National Insurance is likely to launch an IPO by end of March 2018, reported CNBC TV 18. The state-run general insurer will become the third company in the sector to list after New India Assurance and GIC Re. The Kolkata-based National Insurance had approached insurance regulatory and development authority (IRDA) for listing in October this year and was granted in-principle approval on December 13. The likely dilution through the IPO will be between 10% to 15%, say reports. The investors may value the company at over Rs 20,000 crore, anticipate market experts. Majority of National Insurance IPO proceeds will go towards the government’s divestment program leaving a smaller portion with the company, sources told CNBC TV 18.
In mid-January this year, the Cabinet Committee on Economic Affairs had approved the listing of five state-owned general insurance companies and reducing the government’s stake in them from 100% to 75%. New India Assurance, Oriental Insurance, National Insurance, United India Insurance and General Insurance Corporation of India, or GIC Re, are the five companies that will list on stock exchanges. GIC Re and New India Assurance are two players which have already appointed merchant bankers to manage their IPOs.
In 2015, the Insurance Regulatory and Development Authority of India (IRDAI) raised the maximum stake that foreign investors can hold in Indian insurers to 49 percent from 26 percent. The regulator also made it easier for Indian insurers to launch initial public offerings (IPOs) and for state-owned insurers to privatise. This has led to the IPOs of four private and two state-owned insurers over the past 14 months. The IPOs of three more state-owned insurers (United India Insurance, National Insurance and The Oriental Insurance) are scheduled for 2018.
About National Insurance
National Insurance Company Limited (NICL) is a state-owned general insurance company in India. Its catchline is “Trusted Since 1906” in italic. The company headquartered at Kolkata was established in 1906 and nationalised in 1972. Its portfolio consists of a multitude of general insurance policies, offered to a wide arena of clients encompassing different sectors of the economy. Apart from being a leading insurance provider in India, NICL also serves Nepal.