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
NIA promoter is the President of India, acting through the MoF.
| 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 | |||
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 Open | Nov 1, 2017 - Nov 3, 2017 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 120,000,000 Eq Shares of Rs 5 (aggregating up to Rs 9,600.00 Cr) |
| Fresh Issue | 24,000,000 Eq Shares of Rs 5 (aggregating up to Rs [.] Cr) |
| Offer for Sale | 96,000,000 Eq 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 |
| Min Order Quantity | 18 Shares |
| Listing At | BSE, NSE |
A discount of Rs 30 per equity share is offered to applications in retail and employee quota.
| 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% |
No. of Times Issue Subscribed (BSE + NSE) | |||||||
|---|---|---|---|---|---|---|---|
As on Date & Time | |||||||
Shares Offered | 58,200,000 | 17,460,000 | 40,740,000 | 3,600,000 | 120,000,000 | ||
Nov 3, 2017 16:00 | 2.34x | 0.11x | 0.11x | 0.20x | 1.20x | ||
562 3.3 Rating:  Vote Here ... |
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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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