New India Assurance Co. Ltd launched its Initial Public Offering worth Rs. 9,600. The insurance company has set a price band of Rs770-800 per share for the IPO, which values it at Rs64,392-67,940 crore. The offer shall close on November 3, 2018 and it will see a stake dilution of 14.13%.
The company’s key business verticals such as fire insurance, marine insurance, motor insurance, crop insurance and health insurance and the gross written premium increased at a compound annual growth rate of 15.18% from Rs13,200.18 crore in fiscal 2013 to Rs 23,230.49 crore in fiscal 2017. It reported an increase in revenue by 16% at a profit of Rs. 839.86 crores in 2016-17.According to G. Srinivasan, chairman and managing director of NIA, the company intends to focus on cost-effective expansion, capitalize on significant market potential and increase market share, and improve underwriting profitability by minimizing errors, developing accurate underwriting models and replacing loss-making schemes and channels with profitable options.
