New India Assurance IPO oversubscribed 1.04 times

IPO

The initial public offer (IPO) of New India Assurance Company was oversubscribed 1.04 times on the first day of the three-day bidding today.

The IPO, which aims to raise Rs 9,600 crore, received bids for 12,51,32,760 shares against the total issue size of 12,00,00,000 shares, data available with the NSE showed.

The portion reserved for qualified institutional buyers (QIBs) was oversubscribed 2.13 times, non institutional investors 2 percent and retail investors 2 percent.

The IPO, which will close on November 3, comprises sale of 9.6 crore shares by the government, besides fresh issue of 2.4 crore shares. Thus, a total of 12 crore shares of NIA will be sold through the share sale offer, constituting around 14.56 percent of the company's post issue share capital.

The IPO's price band has been set at Rs 770-800 per equity share.

At the upper end of the price band, the IPO will fetch Rs 9,600 crore.

New India Assurance, the country's largest general insurance company, has assets of over Rs 69,000 crore and has been growing at CAGR of over 15 percent for the last five years.

Kotak Mahindra Capital Company, Axis Capital, Nomura Financial Advisory and Securities (India) Private Limited, IDFC Bank Limited and YES Securities are the book running lead managers to the offer.