National Insurance's IPO will most likely come out in Q1 of FY19.
Insurance initial public offerings (IPOs) are set to take a break in the last quarter of the financial year. The sector, which saw ICICI Lombard General Insurance, HDFC Life Insurance, SBI Life Insurance, New India Assurance and General Insurance Corporation of India (GIC Re) go for IPO in the third quarter of FY18, may see a pause in the fourth quarter of the financial year.
National Insurance, which had received its final approval for the IPO, is unlikely to bring out the public issue in this financial year. Company sources said that the IPO will be pushed to the first quarter of FY19.
“We have received all the necessary approvals from the authority. However, FY18 is coming to a close and March is too close. So we will bring out the issue in the next financial year,” a senior company official said. The insurer was initially planning to bring out the IPO by March 2018.
In early 2017, the cabinet gave its approval to list the state-owned general insurance and reinsurance companies. This included New India Assurance, National Insurance, General Insurance Corporation of India, United India Insurance and Oriental Insurance. Of these, two insurers have been listed and National Insurance was to bring out its issue by FY18 end.
The other public general insurers are likely to be listed only by the third quarter of FY19. Among private insurers, Reliance General has received the Securities and Exchange Board of India (Sebi) nod for its IPO.
As per regulations, insurance companies are required to seek the nod of both Sebi and Insurance Regulatory and Development Authority of India (IRDAI) for listing on the stock exchanges.ICICI Prudential Life Insurance was the first insurance company to be listed on the stock exchanges. It brought out its IPO in FY17.