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New India Assurance IPO subscribed 1.05 times so far on Day 2

BL Internet Desk Chennai | Updated on January 09, 2018 Published on November 02, 2017

The initial public offering (IPO) of state-owned general insurance firm The New India Assurance Co Ltd was subscribed 1.05 times so far on the second day of the share sale on Thursday.

As of 1pm, the IPO received bids for 1,25,982,972 shares against the total issue size of 120 million shares, according to NSE data. The IPO will close on November 3.

On Wednesday, the IPO had received bids for just over 12 crore shares, which was 1.03 times the total issue size.

The country's largest general insurance company in terms of net worth, domestic gross direct premium, profit after tax and number of branches, has fixed the price range at Rs. 770-800 for its IPO, a move that would enable it to raise Rs. 9,700 crore at the upper band of the offer.

The general insurer is selling 12 crores shares with a face value of Rs. 5 each of which 2.4 crore shares are fresh issue and 9.6 crore shares are an offer for sale (OFS).

The total issue will constitute 14.56 per cent of the post offer paid-up share capital of the company. Retail individual investors and qualified employees will get a price discount of Rs. 30 per share each.

Kotak Investment Banking, Axis Capital, IDFC Bank, Nomura and Yes Securities are the banks managing New India Assurance’s IPO.

For New India Assurance, the largest general insurance company in India and a leader across segments, growing business over the next couple of years will not be a challenge.

The company’s diverse product portfolio, wide distribution network and strong relationship with large corporates are key positives that will help it benefit from the growing opportunities in the general insurance space.

Published on November 02, 2017
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