The initial public offering (IPO) of state-owned New India Assurance (NIA), the largest non-life insurer in the country, was subscribed 1.19 times when the INR96-billion (US$1.48 billion) fundraising exercise closed last Friday.
As of 8 pm last Friday, the IPO received bids for 143.2 million shares against 120 million shares on offer, stock exchange data show.
The qualified institutional buyers' category was subscribed 2.3 times, while the portion reserved for noninstitutional investors and retail investors was subscribed 0.1 time each. The employees' portion was subscribed 0.2 time. Retail investors and employees of the company were given a discount of INR30 on the offer price.
NIA had set a price range of INR770-800 per share for the IPO, which comprises an offer for sale of 96 million shares by the government besides a fresh issue of 24 million shares. The offer constituted 14.56% of the post-IPO paid-up equity share capital of the company.
Local media reports say that the country's largest life insurer LIC, made a bid of a US$1 billion (about INR65 billion) for NIA's shares.
NIA’s IPO is the second largest this year after that of state-owned GIC Re which raised INR113.72 billion share sale last month.