Bookbuilding IPO | ₹9,586 Cr | Listed at BSE, NSE | Wed, Nov 1, 2017 - Fri, Nov 3, 2017
New India Assurance IPO is a book build issue of ₹9,585.82 crores. The issue is a combination of fresh issue of 2.40 crore shares aggregating to ₹1,917.16 crores and offer for sale of 9.60 crore shares aggregating to ₹7,668.66 crores.
New India Assurance IPO bidding started from Nov 1, 2017 and ended on Nov 3, 2017. The allotment for New India Assurance IPO was finalized on Nov 8, 2017. The shares got listed on BSE, NSE on Nov 13, 2017.
New India Assurance IPO price band is set at ₹800 per share. The lot size for an application is 18. The minimum amount of investment required by an retail is ₹14,400 (18 shares) (based on upper price). The lot size investment for sNII is 14 lots (252 shares), amounting to ₹2,01,600, and for bNII, it is 70 lots (1,260 shares), amounting to ₹10,08,000.
The issue includes a reservation of up to 36,00,000 shares for employees offered at a discount of ₹30.00 to the issue price.
Axis Bank Ltd. is the book running lead manager and MUFG Intime India Pvt.Ltd. is the registrar of the issue.
Refer to New India Assurance IPO RHP for detailed Information.
IPO Open
Wed, Nov 1, 2017
IPO Close
Fri, Nov 3, 2017
Issue Price
₹800 per share
Market Cap (Pre-IPO)
₹65,920.00 Cr
| IPO Date | 1 to 3 Nov, 2017 |
| Listed on | Mon, Nov 13, 2017 |
| Face Value | ₹5 per share |
| Price Band | ₹770 to ₹800 |
| Issue Price | ₹800 per share |
| Lot Size | 18 Shares |
| Sale Type | Fresh capital cum OFS |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Retail Discount | Rs 30.00 per share |
| Employee Discount | ₹30.00 |
| Total Issue Size | 12,00,00,000 shares (agg. up to ₹9,586 Cr) |
| Fresh Issue | 2,40,00,000 shares (agg. up to ₹1,917 Cr) |
| Offer for Sale | 9,60,00,000 shares of ₹5 (agg. up to ₹7,669 Cr) |
| Share Holding Pre Issue | 80,00,00,000 shares |
| Share Holding Post Issue | 82,40,00,000 shares |
| BSE Script Code / NSE Symbol | 540769 / NIACL |
| ISIN | INE470Y01017 |
New India Assurance IPO comprises a total issue size of 12,00,00,000 shares. The net offer to the public is 11,64,00,000 shares, after excluding 36,00,000 shares under a preferential allotment. Of the Net offer 5,82,00,000 (50.00%) are allocated to QIB, 1,74,60,000 (15.00%) allocated to NII 4,07,40,000 (35.00%) allocated to RII.
| Investor Category | Shares Offered | % of Net Issue | % of Total Issue | Max Allottees |
|---|---|---|---|---|
| QIB Shares Offered | 5,82,00,000 | 50.00% | 48.50% | NA |
| NII (HNI) Shares Offered | 1,74,60,000 | 15.00% | 14.55% | NA |
| Retail Shares Offered | 4,07,40,000 | 35.00% | 33.95% | 22,63,333 |
| Preferential Reservations | ||||
| Employee Shares Offered | 36,00,000 | 3.00% | NA | |
| Total Shares Offered | 12,00,00,000 | 100.00% | 100.00% | |
Investors can bid for a minimum of 18 shares and in multiples thereof.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 18 | ₹14,400 |
| Retail (Max) | 13 | 234 | ₹1,87,200 |
| S-HNI (Min) | 14 | 252 | ₹2,01,600 |
| S-HNI (Max) | 69 | 1,242 | ₹9,93,600 |
| B-HNI (Min) | 70 | 1,260 | ₹10,08,000 |
| Application Category | Maximum Bidding Limits | Bidding at Cut-off Price Allowed |
|---|---|---|
| Only RII | Up to Rs 2 Lakhs | Yes |
| Only sNII | Rs 2 Lakhs to Rs 10 Lakhs | No |
| Only bNII | Rs 10 Lakhs to NII Reservation Portion | No |
| Only employee | Yes | |
| Employee + RII/NII |
|
Yes for Employee and RII/NII |
Incorporated on July 23, 1919 at Mumbai, The New India Assurance Co. Ltd (NIA) is the oldest (in operation for almost a century) and largest general insurance company in India. The company was nationalized by the GoI on January 1, 1974. The President of India, acting through the MoF is the promoter of the company and holds 100% of the pre-Offer paid-up Equity Share capital of the company.
NIA offers insurance in categories including fire insurance; marine insurance, motor insurance, crop insurance, health insurance and other insurance products.
NIA is the market leadership in the general insurance industry in India across the segments except crop insurance.
Company has built an multi-channel distribution network that includes individual and corporate agents, brokers, bancassurance partners and other intermediaries, as well as direct sales and sales through online channels. Company's distribution network includes 68,389 individual agents and 16 corporate agents, 25 banks, and a large number of OEM and automotive dealer.
New India Assurance is rated A-(Excellent) by AM Best Company since 2007 and have been rated AAA/Stable by CRISIL since 2014.
Competitive Strengths
1. Market leadership and established brand for around 100 years.
2. International operations since 1920. Presence in UK with a desk at Lloyd‘s, London. Also have operations in Japan and Australia for over 50 years.
3. Diversified product offering.
4. Strong relationship with reputed reinsurers.
5. Expansive multi-channel distribution network.
6. Robust IT infrastructure
| Period Ended |
|---|
| Amount in ₹ Crore |
The Company proposes to utilise the Net Proceeds from the Issue towards the following objects:
| # | Issue Objects | Est Amt (₹ Cr.) |
|---|---|---|
| 1 | To receive the benefits of listing of the Equity Shares on the Stock Exchanges |
The New India Assurance IPO is subscribed 1.2 times on November 3, 2017 4:00:00 PM (Day 3). The public issue subscribed 0.11 times in the retail category, 2.34 times in the QIB category, and 0.11 times in the NII category. Check Day by Day Subscription Details (Live Status)
| Category | Subscription (times) | Shares Offered | Shares bid for |
|---|---|---|---|
| QIB | 2.34 | 5,82,00,000 | |
| NII | 0.11 | 1,74,60,000 | |
| Retail | 0.11 | 4,07,40,000 | |
| Employee | 0.2 | 36,00,000 | |
| Total | 1.2 | 12,00,00,000 |
| Particulars | ICICI Lombard (Pvt Sector) | New India Assurance (PSU) |
|---|---|---|
| IPO size at the upper price band | Rs 5700 crore | Rs 9600 crore |
| Price Band | Rs 651 - Rs 661 | Rs 770 - Rs 800 |
| Shares issued at | Rs 661.00 | NA |
| FV Rs Per share | Rs 10 | Rs 5 |
| Minimum application lot | 22 shares | 18 shares |
| Issue dates | 15.09.17 to 19.09.17 | 01.11.17 to 03.11.17 |
| Discount offered | NIL | Rs 30 per share to Retail/Employees |
| Issue allocations | 50% QIBs, 15% HNIs, 35% Retail | 50% QIBs, 15% HNIs, 35% Retail |
| IPO constitute % of post issue capital | 19% | 14.56% |
| NAV at the time of IPO | Rs 82.57 per share | Rs 164.04 |
| IPO priced at P/BV | 7.6 | 2.4 |
| IPO priced at P/E | 46 to 50 | 31 to 33 |
| Market share of its overall business | 8.40% | 15% |
| Main Promoters | ICICI Group | Govt. of India |
| Listing at | BSE/NSE | BSE/NSE |
| Post issue promoter holding | 55.92% | 85.44% |
| Market Cap based on upper price band | Rs 30006 crore | Rs 65920 crore |
| In operation since | Since 2000 | Since 1919 |
| Net worth as on 31.03.17 | Rs 3328 crore | Rs 12596 crore |
| Net woth as on 30.06.17 | Rs 3919 crore | Rs 13123.5 crore |
| No. of policies as on 31.03.17 | 17.7 million | 27.10 million |
| Investment asset as on 30.06.17 | Rs 16446 crore | Rs 63122 crore |
| Investment Income for FY 2017 | Rs 315 crore | Rs 4535 crore |
| Investment Income for Q1 2018 | Rs 122 crore | Rs 1255 crore |
| Solvency Ratio (IRDAI Specific 150%) as on 30.06.17 | 213% | 227% |
| # | Issue Expenses | Est Amt (₹ Cr.) |
|---|---|---|
| 1 | Lead management fees, underwriting commission, brokerage and selling commission (including commissions to SCSBs for ASBA Applications and commissions to Non-Syndicate Registered Brokers)137.0921.240.14 | 13.71 |
| 2 | Processing fees to the SCSBs for processing Application Forms procured by the Syndicate at Syndicate ASBA Centres or Non-Syndicate Registered Brokers and submitted to the SCSBs | 0.29 |
| 3 | Registrar fee and other related fees (postage of refunds,etc.) | 0.00 |
| 4 | Advertising and marketing expenses, printing, stationery and distribution expenses | 19.95 |
| 5 | Other expenses (SEBI Filing fees, legal and auditor fees, stock exchanges’ processing and listing fees, book-building fees, depository’s charges,etc.Other expenses (SEBI Filing fees, legal and auditor fees, stock exchanges’ processing and listing fees, book-building fees, depository’s charges,etc. | 30.58 |
| Price Details | BSE | NSE |
|---|---|---|
| Final Issue Price | ₹800.00 | ₹800.00 |
| Open | ₹748.90 | ₹750.00 |
| Low | ₹717.75 | ₹717.40 |
| High | ₹749.00 | ₹750.00 |
| Last Trade | ₹725.05 | ₹727.10 |
New India Assurance IPO is a main-board IPO of 12,00,00,000 equity shares of the face value of ₹5 aggregating up to ₹9,586 Crores. The issue is priced at ₹800 per share. The minimum order quantity is 18.
The IPO opens on Wed, Nov 1, 2017, and closes on Fri, Nov 3, 2017.
MUFG Intime India Pvt.Ltd. is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.
Zerodha customers can apply online in New India Assurance IPO using UPI as a payment gateway. Zerodha customers can apply in New India Assurance IPO by login into Zerodha Console (back office) and submitting an IPO application form.
Steps to apply in New India Assurance IPO through Zerodha
Visit Zerodha IPO Application Process Review for more detail.
The New India Assurance IPO opens on Wed, Nov 1, 2017 and closes on Fri, Nov 3, 2017.
New India Assurance IPO lot size is 18, and the minimum amount required for application is ₹14,400.
You can apply in New India Assurance IPO online using either UPI or ASBA as a payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO Application is offered by brokers who don't offer banking services. Read more detail about applying IPO online through Zerodha, Upstox, 5Paisa, Nuvama, HDFC Bank, and SBI Bank.
The finalization of Basis of Allotment for New India Assurance IPO will be done on Wednesday, November 8, 2017, and the allotted shares will be credited to your demat account by Fri, Nov 10, 2017. Check the New India Assurance IPO allotment status.
The New India Assurance IPO listing date is on Mon, Nov 13, 2017.
