New Delhi: The initial public offering (IPO) of state-owned general insurance firm The New India Assurance Co. Ltd was subscribed 1.05 times so far on the second day of the share sale on Thursday.
As of 1pm, the IPO received bids for 125,982,972 shares against the total issue size of 120 million shares, according to NSE data. The IPO will close on 3 November.
On the first day on Wednesday, the IPO was subscribed 1.04 times. The portion of shares reserved for institutional investors saw a subscription of 2.13 times, while that reserved for retail investors and high net-worth individuals (HNIs) were subscribed 2% or 0.02 times each.
The insurance firm has set a price band of Rs770-800 per share for the IPO, which values it at Rs64,392-67,940 crore. The New India Assurance IPO comprises sale of 96 million shares by the government, besides fresh issue of 24 million shares. Thus, a total of 120 million shares of the general insurance firm will be sold through the share sale offer, constituting around 14.56% of the company’s post issue share capital.
New India Assurance has assets of over Rs69,000 crore and has been growing at a compounded annual growth rate (CAGR) of over 15% for the last five years. Kotak Mahindra Capital Co. Ltd, Axis Capital Ltd, Nomura Financial Advisory and Securities (India) Pvt. Ltd, IDFC Bank Ltd and Yes Securities are the investment banks managing the IPO.