The New India Assurance Co (NIA) received a tepid response on its listing day on Monday. Share price of the company opened at Rs 750 on the National Stock Exchange (NSE), 6.25% lower than its issue price of Rs 800. The stock closed the session 3.57% lower at Rs 723.30 on the NSE. Share price of the country’s general insurance company hit an intraday high of Rs 750 and an intraday low of Rs 717.40. The initial public offering (IPO) of NIA was subscribed by 1.19 times on November 3, the concluding day of the offer, with investors bidding for 14.32 crore shares against 12 crore shares on offer. The qualified institutional buyers (QIB) bid for 13.59 crore shares against 5.82 crore shares on offer. High net worth individuals (HNI) bid for Rs 20.30 lakh shares against 1.74 crore shares on offer. Retail investors bid for 45.32 lakh shares against 4.07 crore shares on offer. Employees bid for 7.09 lakh shares against 36 lakh shares on offer.
NIA had set a price band of Rs 770-800 for its initial public offering (IPO). The offer comprised a fresh issue of 2.4 crore shares and offer for sale of up to 9.6 crore shares by the government. Retail investors and employees received a discount of Rs 30 on the price of a share. According to its red herring prospectus (RHP) as of March 31, 2017, the company had issued 27.10 million policies across all their product segments. The company’s products can be broadly classified into fire insurance; marine insurance, motor insurance, crop insurance, health insurance and other insurance products.
In FY 17, NIA’s gross written premium was Rs 23,230 crore against Rs 19,227 crore in the previous year. Their gross written premium increased at a compounded annual growth rate (CAGR) of 15.18% from FY 13 to 17. The company posted a net profit of Rs 839.8 crore in FY 17. Last month, two insurance companies, SBI Life and ICICI Lombard had raised Rs 8,400 crore and Rs 5,700 crore respectively through their IPOs. General Insurance Corporation raised Rs 11,372 crore in the second week of October.