New India Assuarance Company IPO (NIA IPO)
New India Assuarance Company IPO (NIA IPO)New India Assurance IPO received the approval of SEBI and is coming up with its public offering in the first week of November 2017. The IPOÂ size is of Rs. 10,000 Crore. New India Assurance company Limited is a government owned multinational general insurance company. The business of the company is spread over 28 countries all around the world. The company was founded on July 23, 1919 by Sir Dorabji Tata. It was nationalized in the year 1974. Moreover, it is the largest general insurance company of India.
NIA is the only direct insurer in India which receives the A rating from AM Best. CRISIL has also given ‘AAA’ rating to the company. This clearly indicates that company has the highest degree of financial strength.
Company Business
New India Assurance Company provides general insurance facility such as fire insurance, marine insurance, crop insurance, motor insurance, health insurance and much more. According to the 2014-15 stats, the company has 2097 offices, 1047 micro offices, 19,000 employees and near about 50,000 tied agents all over India. The company offer 170 insurance products covering almost all the segments of general insurance.
On the other hand, company operates its foreign operation through subsidiaries, agency operations, direct branches and associate companies. In addition to this, company is alos a equity holder of the insurance companies in Singapore, Saudi Arabia, Kenya and Jordan. It also has a subsidiary company in Trinidad and Tobago.
Company Strength
- An established brand from a century.
- Market leader in the general insurance sector.
- Global presence in countries like Saudi Arabia, Kenya, Singapore, Australia, London and Japan.
- Offers diversified insurance products.
- Wide distribution network.
Company Promoter
The promoter of the company is President of India. However, Ministry of Finance handles the company in his behalf.
Objectives of the Issue
The issue is a combination of fresh issue and the offer for sale. It is also part of Government of India’s disinvestment project. The objects of the issue are as follows –
- For the expansion of the company.
- For improving the solvency ratio and solvency margin.
NIA – Company Financials
This is the summary of New India Assurance Company’s financial information of the last 3 years in consolidated form:
| Particulars | For the year/period ended (in Rs. million) | |||
|---|---|---|---|---|
| 31-Mar-17 | 31-Mar-16 | 31-Mar-15 | ||
| Total Assets | 365,668.25 | 316,338.34 | 345,410.14 | |
| Total Revenue | 205,536.23 | 176,727.27 | 157,110.83 | |
| Profit After Tax (PAT) | 8,398.60 | 9,303.54 | 13,773.23 | |
New India Assurance Company Issue Details
- IPO Open Date – First week of November
-
Issue Size – 120,000,000 Equity Shares of Rs. 5 amounting to Rs. 9,600 Cr
Fresh Issue of 24,000,000Â equity shares of Rs. 5 each
Offer for sale of Rs 96,000,000 equity shares of Rs. 5 each - Face Value – Rs 5 per share
- Issue Price – 770 – 800
- Lot size – 18 shares
- Minimum order quantity – 18 shares
- Listing Stock exchanges – NSE and BSE
New India Assurance IPO Important Dates:
- IPO Opens on – 1 November 2017
- IPO Closes on – 3 November 2017
- Allotment of shares – On or after 8 November 2017
- Refund process starts on – On or after 9 November 2017
- Transfer of equity shares to Demat Account – On or after 10 November 2017
- Listing of New India Assurance IPO shares on exchanges – On or after 13 November 2017
- Trading of shares starts on – On or after 13 November 2017
