The largest non-life insurer New India Assurance hopes to launch its initial share sale by October as it expects the final government go-ahead for it anytime now, a senior company official said today.
The largest non-life insurer New India Assurance hopes to launch its initial share sale by October as it expects the final government go-ahead for it anytime now, a senior company official said today. New India and GIC Re are the two government-run non- life insurer and the reinsurer, respectively, which are likely to hit the markets first with IPOs. This will be followed by the other three state-run non-life insurers — National Insurance, Oriental Insurance and United India Insurance.
“We are awaiting the government clearance which may come in anytime now. We are hopeful of coming up with an IPO by October,” a senior New India official told reporters on the sidelines of an industry event organised by Dun & Bradstreet here. The government has set a steep disinvestment target of Rs 72,500 crore for the current fiscal, of which Rs 11,000 crore is expected to come from listing of PSU general insurance companies. Meanwhile, National Insurance has also started the process for its IPO which is likely to hit the markets by the end of the current fiscal year.
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“We are definitely in the process of coming out with an IPO by before March and we are in constant touch with the Department of Financial Services, Irdai and other government departments,” said National Insurance Chairman and Managing Director Sanath Kumar. The government is planning to cut its stake in five state-run general insurers to 75 per cent in tranches from 100 per cent at present.