New India Assurance IPO subscribed 1.19 times on Day 3
ETMarkets.com|
Updated: Nov 03, 2017, 07.38 PM IST
The initial public offer (IPO) of The New India Assurance Company was subscribed 1.19 times on the last day of bidding process on Friday till 7.40 pm.
The IPO, which aims to raise Rs 9,600 crore, received bids for 14,33,25,792 shares against the total issue size of 12,00,00,000 shares, data available with the NSE showed.
The company has fixed a price band of the public offer at Rs 770-800 per equity share. The issue will close on Friday.
Incorporated on July 23, 1919 at Mumbai, The New India Assurance Co. Ltd (NIACL) 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.
BP Wealth has given ‘Subscribe’ to the issue. “NAICL has gained market share in the motor insurance segment and with the emission norms and GST coming into picture, we expect a rise in premiums from the motor segment. At upper price band, the issue is priced at P/B of 4.9x (Q1FY18) and PE of 78x (FY17) post issue. The company has received premium valuations justified in context of huge growth potentials of non-life segment and leadership positioning,” BP Wealth said.
On the other hand, Angel Broking said, “Considering the subdued ROE, inconsistent PAT and higher combined ratio, we recommend ‘Neutral’ rating on the issue.”
The IPO, which aims to raise Rs 9,600 crore, received bids for 14,33,25,792 shares against the total issue size of 12,00,00,000 shares, data available with the NSE showed.
The company has fixed a price band of the public offer at Rs 770-800 per equity share. The issue will close on Friday.
Incorporated on July 23, 1919 at Mumbai, The New India Assurance Co. Ltd (NIACL) 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.
BP Wealth has given ‘Subscribe’ to the issue. “NAICL has gained market share in the motor insurance segment and with the emission norms and GST coming into picture, we expect a rise in premiums from the motor segment. At upper price band, the issue is priced at P/B of 4.9x (Q1FY18) and PE of 78x (FY17) post issue. The company has received premium valuations justified in context of huge growth potentials of non-life segment and leadership positioning,” BP Wealth said.
On the other hand, Angel Broking said, “Considering the subdued ROE, inconsistent PAT and higher combined ratio, we recommend ‘Neutral’ rating on the issue.”
