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The New India Assurance Company Limited IPO (New India Assurance IPO) Detail

Nov 1, 2017 - Nov 3, 2017

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

Company Promoters:

NIA promoter is the President of India, acting through the MoF.

Company Financials:

Summary of financial Information (Consolidated)
Particulars For the year/period ended (in Rs. million)
31-Mar-17 31-Mar-16 31-Mar-15
Total Assets 365,668.25 316,338.34 345,410.14
Total Revenue 205,536.23 176,727.27 157,110.83
Profit After Tax 8,398.60 9,303.54 13,773.23

Objects of the Issue:

The Offer comprises a Fresh Issue by the Company and an Offer for Sale by the Selling Shareholder.

Offer for Sale
The proceeds of the Offer for Sale shall be received by the Selling Shareholder. Company will not receive any proceeds from the Offer for Sale.

Fresh Issue
Company proposes to utilize the Net Proceeds towards meeting our future capital requirements which are expected to arise from the growth and expansion of our business, improving our solvency margin and consequently our solvency ratio.

Issue Detail:

  »»  Issue Open: Nov 1, 2017 - Nov 3, 2017
  »»  Issue Type: Book Built Issue IPO
  »»  Issue Size: 120,000,000 Equity Shares of Rs 5 aggregating up to Rs 9,600.00 Cr
    ›  Fresh Issue of 24,000,000 Equity Shares of Rs 5 aggregating up to Rs [.] Cr
    ›  Offer for Sale of 96,000,000 Equity Shares of Rs 5 aggregating up to Rs [.] Cr
  »»  Face Value: Rs 5 Per Equity Share
  »»  Issue Price: Rs 770 - Rs 800 Per Equity Share
  »»  Market Lot: 18 Shares
  »»  Minimum Order Quantity: 18 Shares
  »»  Listing At: BSE, NSE

Retail & Employee Discount

A discount of Rs 30 per equity share is offered to applications in retail and employee quota.

ICICI Lombard IPO Vs New India Assurance IPO

Comparision of ICICI Lombard and New India Assurance IPO
Particulars ICICI Lombard (Pvt Sector) New India Assurance (PSU)
IPO size at the upper price band ₹5700 crore ₹9600 crore
Price Band ₹651 - ₹661 ₹770 - ₹800
Shares issued at ₹661.00 NA
FV ₹Per share ₹10 ₹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 ₹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 ₹82.57 per share ₹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 ₹30006 crore ₹65920 crore
In operation since Since 2000 Since 1919
Net worth as on 31.03.17 ₹3328 crore ₹12596 crore
Net woth as on 30.06.17 ₹3919 crore ₹13123.5 crore
No. of policies as on 31.03.17 17.7 million 27.10 million
Investment asset as on 30.06.17 ₹16446 crore ₹63122 crore
Investment Income for FY 2017 ₹315 crore ₹4535 crore
Investment Income for Q1 2018 ₹122 crore ₹1255 crore
Solvency Ratio (IRDAI Specific 150%) as on 30.06.17 213% 227%

New India Assurance IPO Reviews:

  1. The New India Assurance Company Limited IPO review by Dilip Davda

New India Assurance IPO Recommendations:

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Issue Subscription Detail / Current Bidding Status

Number of Times Subscribed (BSE + NSE)
As on Date & TimeQIBNIIRIIEmployeeTotal
Shares Offered / Reserved58,200,00017,460,00040,740,0003,600,000120,000,000
Day 1 - Nov 1, 2017 17:00 IST2.13000.02000.02000.03001.0400
Day 2 - Nov 2, 2017 17:00 IST2.16000.04000.05000.08001.0700
Day 3 - Nov 3, 2017 16:00 IST2.33540.11420.11290.19551.1972

New India Assurance IPO Prospectus

New India Assurance IPO Rating

562
3.3
Rating:Rated 3.3 stars

Vote Here ...

New India Assurance IPO Listing Date

  •   ›  Listing Date: Monday, November 13, 2017
  •   ›  BSE Script Code: 540769
  •   ›  NSE Symbol: NIACL
  •   ›  Listing In: B Group of Securities
  •   ›  ISIN: INE470Y01017
  •   ›  Issue Price: Rs 800 Per Equity Share
  •   ›  Face Value: Rs 5 Per Equity Share

Listing Day Trading Information

.
Issue Price:
Open:
Low:
High:
Last Trade:
Volume:
BSE
Rs 800.00
Rs 748.90
Rs 717.75
Rs 749.00
Rs 725.05
430,055
NSE
Rs 800.00
Rs 750.00
Rs 717.40
Rs 750.00
Rs 727.10
2,539,383

New India Assurance IPO News Alerts

  1. Monday, November 13, 2017 12:00:00 AM
    New India Assurance IPO - Listing
  2. Friday, November 3, 2017 12:00:00 AM
    New India Assurance IPO - Close
  3. Wednesday, November 1, 2017 12:00:00 AM
    New India Assurance IPO - Open

Company Contact Information

The New India Assurance Company Limited
87, M.G. Road, Fort,
Mumbai 400 001

Phone: +91 22 2270 8263
Fax: +91 22 2265 2811
Email: investors@newindia.co.in
Website: http://www.newindia.co.in/

New India Assurance IPO Registrar

Link Intime India Private Ltd   »  Report
   Link Intime India Private Ltd,
   C-13 Pannalal Silk Mills Compound,
   LBS Marg, Bhandup West, Mumbai 400078

Phone: +91-22-25963838
Fax: +91-22-25946969
Email: nia.ipo@linkintime.co.in
Website: http://www.linkintime.co.in

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New India Assurance IPO Review / Comments

avatar
391. Super Trader  Dec 18, 2017 7:18:43 AM IST I Like It. | Report Abuse Reply
Top Contributor Top Contributor (200+ Posts, 100+ Likes)
Can we enter New India Insurance ? looks still downside risk (under 500). Experts suggestions welcome.
avatar
390. gamble  Nov 12, 2017 6:40:10 PM IST I Like It. 6 | Report Abuse Reply
IPO Guru IPO Guru (1600+ Posts, 3400+ Likes)
NiA......

Listing may be whatever but below issue price(770),
Good buy if available below 720/10 imo....

Within sometime ( 100 days ) it may cross GiC price either directly or indirectly !!

avatar
390.2. yazoo  Nov 13, 2017 10:15:41 AM IST I Like It. | Report Abuse
Discount within 6 and 12 % was what i was looking at and 10 is a sweet spot where it fell to
can go to max 15% discount !! will lic or fis rescue at that point is the question !!
avatar
390.3. ipo hni  Dec 14, 2017 12:48:53 AM IST I Like It. | Report Abuse
Gamble sir pls advice what to do now ?? Shall we average and buy more ?? From where it will stop falling??
avatar
389. RAJAKUMAR  Dec 7, 2017 12:14:04 PM IST I Like It. | Report Abuse Reply
AT 12.10 PM
QIB 1.97
HNI 0.03
RETAIL 1.28 TIMES
TOTAL 1.21 TIMES
RETAIL APPLICATION WISE 1.11
NO. OF APPLICATION 1,31,700
avatar
388. AGK  Dec 4, 2017 1:58:56 PM IST I Like It. | Report Abuse Reply
A low of 600 today...whats happening? This is just falling day by day
avatar
387. P M  Nov 29, 2017 6:54:17 PM IST I Like It. | Report Abuse Reply
IPO Mentor IPO Mentor (900+ Posts, 800+ Likes)
Again makes new all time low today ------------- 633.35
avatar
387.1. Navkant  Dec 1, 2017 9:17:13 PM IST I Like It. | Report Abuse
Top Contributor Top Contributor (200+ Posts, 200+ Likes)
What a waste of money from LIC 😐. Should have offered the IPO at the current Stock price point.
avatar
386. gamble  Nov 13, 2017 11:12:25 AM IST I Like It. 10 | Report Abuse Reply
IPO Guru IPO Guru (1600+ Posts, 3400+ Likes)
I was not expecting this quick 3% gain,
Anyway reducing some quantity @742,it was good trade!!


Now premium nikl jayega aaj ke profit se, may b!!

349.1. gamble Nov 13, 2017 10:10:09 AM IST 1 |
IPO Guru (1500+ Posts, 2800+ Likes)

Added some @719.5 placed limit earlier,

If it go down '''''''' Medicliam premium Nahi bharenge'''''''' !!!!!
avatar
386.1. Prashant Hemrajani  Nov 20, 2017 1:49:15 PM IST I Like It. | Report Abuse
Sir share your view on nia and gic now... what to do
avatar
386.2. lakkiboy  Nov 28, 2017 11:07:30 AM IST I Like It. | Report Abuse
@gamble ji, Holding talkwalkers from 310 level and around 6 months.. i dont see any upside... Canni continue to hold?
avatar
385. P M  Nov 27, 2017 6:03:26 PM IST I Like It. | Report Abuse Reply
IPO Mentor IPO Mentor (900+ Posts, 800+ Likes)
Again makes new all time low today ------------- 635.00
avatar
384. P M  Nov 23, 2017 5:59:29 PM IST I Like It. | Report Abuse Reply
IPO Mentor IPO Mentor (900+ Posts, 800+ Likes)
Again makes new all time low today ------------- 650.20
avatar
383. PavanM  Nov 1, 2017 9:58:14 AM IST I Like It. 7 | Report Abuse Reply
Top Contributor Top Contributor (300+ Posts, 200+ Likes)
Welcome back Septa Sir.. didnt visit this site from few days due to being busy with my office work. Below is excerpt from Equity matter view on this IPO. Im avoiding this over valued IPO considering below and Gamble view of meagre listing gains. Risk reward ratio is not favourable. Even government is not leaving any listing gains. Lets avoid all these over valued IPOs.

NIAC is the market leader in the general insurance industry and has been in operation for close to a century. But the company has not been able to utilise its moat optimally with rising competition from private sector players further denting its profitability. NIAC''s combined ratio, though better than public sector peers, is far higher as compared to private sector players.

The combined ratio (ratio of claim loss and management expenses to net premiums) of 120% means that the company is barely breaking even in the core insurance business. The number may certainly seem better than its public-sector peers, but the fact remains that its profitability depends heavily on the investment returns.

As a matter of fact, NIAC''s operating loss from the core insurance business has widened from Rs 321 m in FY13 to Rs 9 billion in FY17. Resultantly, the company''s net profits have declined from Rs 9.2 billion in FY13 to Rs 8.4 billion in FY17. The return on equity has fallen from 10.2% to 6.8% over the same period and is the lowest among private sector players.

In other words, NIAC''s financial performance in core insurance business is not optimal and continues to remain below par as compared to private sector players.

Now coming to valuations...

At the upper end of the price band of Rs 800, New India Assurance is valued at 78 times its FY17 earnings. This is higher than the PE of 38.5 times commanded by the NBFC sector. Based on its book value as on 30th June 2017, the stock is valued at 4.3 times which is quite expensive considering that the core underwriting losses have widened in last five years.

Thus, NIAC''s costly valuations do not provide adequate margin of safety. Therefore, we recommend subscribers to consider AVOIDING the IPO.
avatar
383.3. AJIT SINGH CSS  Nov 1, 2017 11:49:20 AM IST I Like It. | Report Abuse
AGREE WITH 155.PAVAN ANALYSIS. COMBINED RATIO FORLAST 5YEARS CAN BE AVALABLE FOR DIISSION MAKING
avatar
383.4. PavanM  Nov 14, 2017 10:09:56 AM IST I Like It. 1 | Report Abuse
Top Contributor Top Contributor (300+ Posts, 200+ Likes)
Retail investors, avoid all these high priced IPOs. Primary market is no more lucrative except very few reasonably priced IPOs.
avatar
382. P M  Nov 21, 2017 8:48:12 PM IST I Like It. | Report Abuse Reply
IPO Mentor IPO Mentor (900+ Posts, 800+ Likes)
Again makes new all time low today ------------- 663.00
avatar
381. P M  Nov 20, 2017 4:50:58 PM IST I Like It. | Report Abuse Reply
IPO Mentor IPO Mentor (900+ Posts, 800+ Likes)
Again makes new all time low today ------------- 667.10
avatar
380. MickeyP  Nov 19, 2017 4:22:08 PM IST I Like It. | Report Abuse Reply
Top Contributor Top Contributor (200+ Posts, 300+ Likes)
Seems there is no IPO lined up in the next few days. Finally IPO flood is settling down.
avatar
379. P M  Nov 17, 2017 5:34:40 PM IST I Like It. | Report Abuse Reply
IPO Mentor IPO Mentor (900+ Posts, 800+ Likes)
Today makes new all time low ------------- 673.20
avatar
379.1. yazoo  Nov 18, 2017 2:43:07 PM IST I Like It. | Report Abuse
The counter is illiquid and no one is buying so selling off on low volumes
Sad story of govt apathy
avatar
378. Bullish On India  Nov 17, 2017 4:51:42 PM IST I Like It. | Report Abuse Reply
NIA declares interim dividend of Rs. 3.75 per share
avatar
377. Satya bellala  Nov 17, 2017 12:15:33 PM IST I Like It. | Report Abuse Reply
Hi Guys -

What is the maximum price will go today any expectation, why because i need to hold or sell?
avatar
376. P M  Nov 16, 2017 6:02:42 PM IST I Like It. | Report Abuse Reply
IPO Mentor IPO Mentor (900+ Posts, 800+ Likes)
Today makes new all time low ------------- 678.10
avatar
375. Bullish On India  Nov 16, 2017 11:43:31 AM IST I Like It. | Report Abuse Reply
Good quarterly results reported by NIA yesterday
avatar
374. P M  Nov 15, 2017 5:55:57 PM IST I Like It. | Report Abuse Reply
IPO Mentor IPO Mentor (900+ Posts, 800+ Likes)

Today makes new low ------------ NSE - 679.35 ---------------- BSE - 680.00
Closed @ --------------------------- NSE - 682.70 ---------------- BSE - 681.75
avatar
373. Cool Sunshine  Nov 15, 2017 2:27:16 PM IST I Like It. 1 | Report Abuse Reply
Top Contributor Top Contributor (200+ Posts, 300+ Likes)
Congratulations retailers !!!! Finally it happened...........

IPOs of United India, Oriental Insurance likely to be deferred to December 2018

http://www.moneycontrol.com/news/business/markets-business/ipos-of-united-india-oriental-insurance-likely-to-be-deferred-to-december-2018-2439175.html
avatar
373.1. Anarchist  Nov 15, 2017 4:11:08 PM IST I Like It. 2 | Report Abuse
Top Contributor Top Contributor (200+ Posts, 300+ Likes)
Of course! the promoters understand the retailers don''t remember things beyond a few months....so post fall 2018 sounds perfect to initiate the next round of slaughter..
avatar
372. yazoo  Nov 15, 2017 3:35:59 PM IST I Like It. 2 | Report Abuse Reply
NIC now 15% down ie worst case scenario ... 680 is it a good buy / avg now ? or will it take another 3% fall trrow ?
Govt babus have given indication thru postponement that even lic will find it difficult to support its disinvestment thanks to 10 to 15% dhulai of gic and nic !!
avatar
372.1. Anarchist  Nov 15, 2017 4:00:48 PM IST I Like It. 1 | Report Abuse
Top Contributor Top Contributor (200+ Posts, 300+ Likes)
no buy zone ends under 500...,that''s where the blind buy zone must begin...
if you remember, there was a sudden jump in the pat during the last quarter.. and despite hike in the premiums, revenues weren''t affected..if one has to be sure, they should ideally wait to see how the next quarter''s numbers look like...and buy if they are consistent with the quarter that went by..
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