The New India Assurance Company Limited (NIACL) is India’s largest general insurer in terms of net worth, domestic gross direct premium, profit after tax and branch network as of FY2017. It has been operating for almost a century, having been set up on July 23, 1919. The company was nationalised by the government pursuant to the 1973 scheme which came into force on January 1, 1974. The company is registered with IRDAI for the business of general insurance.
The company’s products can be broadly categorised into verticals such as fire insurance, marine insurance, motor insurance, crop insurance, health insurance and other insurance products. As on June 30, 2017, the company had 68,389 individual agents, 16 corporate agents, bancassurance arrangements with 25 banks in India, and a large number of OEM and automotive dealer arrangements through their agent and broker network.
As on March 31, 2017, NIACL issued 2.71 crore policies across all verticals, the highest for any general insurer in India. As on June 30, 2017, the company’s operations were spread across 29 states and 7 union territories in India and 28 other countries globally through a number of international branches, agency offices and subsidiaries including a desk at Lloyd‘s, London.
- Rs. 9,106.98-9,466.98 crore
- 18 equity shares and in multiples thereafter
- QIB - 50% NIB - 15% Retail - 35%
- Rs. 5
- ASBA mandatory (No cheques will be accepted)
- 36,00,000 equity shares
- Rs. 30 per equity share to retail investors and eligible employees only
- Proposed to be listed on BSE and NSE
- Kotak Mahindra Capital Company Ltd., Axis Capital Ltd., IDFC Bank Ltd.,
Nomura Financial Advisory and Securities (India) Private Ltd. and YES Securities (India) Ltd. - Link Intime India Pvt Ltd
Note: Please note that as per the new SEBI regulations, all initial public offerings (IPOs) after January 1, 2016 need to be subscribed to through the application supported block amount (ASBA) route only. These changes have altered the existing seamless online bidding process. We are striving to make this process completely online for you again. We seek your kind support in the interim.
- An established brand that enjoys market leadership
- Long-standing global footprint and successful international operations
- Sustainable business model driven by customer satisfaction
- Diversified product offerings and an enhanced capability to innovate on products
- Multi-channel distribution network
- Robust financials and IT infrastructure
- Experienced senior management team
The offer comprises a fresh issue and an offer for sale by selling shareholders.
- Fresh Issue
- Offer for Sale
The New India Assurance Company Limited proposes to utilise the net proceeds from the fresh issue to:
(i) Meet future capital requirements expected to arise as the business grows and expands. These requirements have been raised in order to improve the solvency margin and consequently the solvency ratio.
(ii) The further utilisation of the increased capital base deployment of the net proceeds. This would be as per the provisions of the extant IRDAI regulations and the policy adopted by the Board to grow and expand the company’s business.
(iii) Achieving the benefits of listing the equity shares on the stock exchanges and for the offer for sale. Further, the company expects to enhance its visibility and brand image through this listing and hence, provide liquidity to its shareholders.
The proceeds of the offer for sale shall be received by selling shareholders. The company will not receive any proceeds from the offer.
An initial public offering (IPO)/public issue is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves the way for listing and trading of the issuer’s securities.
The shares are initially issued in the primary market at an offering price determined by the lead manager(s)/the merchant banker(s) to the IPO.
The primary market consists of a syndicate of investment banks and broker dealers that the lead managers assemble and that allocate shares to institutional, high net worth individuals (HNI) and individual/retail investors.
As far as IPOs are concerned, a price band is a value-setting method whereby a seller indicates an upper and lower cost range, between which the buyers/investors are able to place their bids. The price band's floor and cap provide guidance to the buyers.
It is up to the company to decide on the IPO price or the price band, in consultation with the lead managers.
The basis of IPO price is disclosed in the offer document. The issuer is required to disclose in detail about the qualitative and quantitative factors justifying the IPO price.
The IPO price is normally based on such factors as the company’s financials, products and services, income stream as well as the demand for the shares and current market conditions.
The lead managers must determine a fair offering price, which takes into consideration the need for the company to raise capital while offering the new issue at a price which represents a fair value of the shares.
A Red Herring Prospectus (RHP) is a document submitted by a company (issuer) as part of a public offering or an IPO of securities (either stocks or bonds).
A retail individual investor means an investor who applies or bids for securities of or for a value of not more than Rs 2,00,000.
Yes. He can bid in a book-built IPO for a value not more than Rs 2,00,000. Any bid made in excess of this will be considered in the HNI category.
Yes. Investors can change or revise the quantity or price in the bid using the form for changing/revising the bid that is available along with the application form. However, the entire process of changing or revising the bids shall be completed before the IPO closes.
In case of fixed price issues, investors are intimated about the CAN/Refund order within 10 days of the closure of the IPO.
In case of book built IPOs, the basis of allotment is finalised by the book-running lead managers within two weeks from the closure of the issue. The registrar then ensures that the demat credit or refund as applicable is completed within 6 working days of the closure of the issue.
In the case of book-built issues, the exchanges (Bombay Stock Exchange/National Stock Exchange) display the data regarding the bids obtained (on a consolidated basis between both these exchanges).
The data regarding the bids is also available category-wise.
Investors are entitled to receive a Confirmatory Allotment Note (CAN) in case they have been allotted shares within 6 working days from the closure of a book Built issue. The registrar has to ensure that the demat credit or refund as applicable is completed within 6 working days of the closure of the book-built issue.
The lead managers also publish an advertisement at least in an English national daily with wide circulation, one Hindi national paper and a regional language daily circulated at the place where registered office of the issuer company is situated.
The listing on the stock exchanges is done within seven days from the finalisation of the issue.
Ideally, it would be around three weeks after the closure of the book-built issue.
In case of fixed price issue, it would be around 10 days after closure of the issue.