Indian two thousand and five hundred rupee banknotes are arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

New India Assurance IPO Subscribed 1.06 Times On Second Day

Day 2 Subscription (As of 4 p.m.)

  • Qualified institutional buyers: 2.13 times
  • Non-institutional bidders: 0.03 times
  • Retail investors: 0.05 times
  • Employees: 0.07 times
  • Overall: 1.06 times

Demand for New India Assurance Company Ltd.’s Rs 9,600 crore initial public offering slowed on the second day of bidding after being subscribed 1.04 times on day 1.

The public issue of the century-old insurer was subscribed 1.06 times today as of 4 pm, according to data shared by Axis Capital showed. The issue received bids for 12.6 crore shares against 12 crore shares on offer.

No new subscription was seen in the segment reserved for qualified institutional bidders after it was subscribed 2.13 times on the first day. Shares allotted to retail investors also saw muted demand with the portion subscribed just 0.05 times while the segment reserved for non-institutional bidders was subscribed 0.03 times the number of shares on offer.

The country’s largest general insurer will use the proceeds from the share sale to increase its capital base to support growth. It will also increase the scale of their business.

It is the second-largest IPO this year after General Insurance Corporation of India Ltd. raised Rs 11,372 crore.

Also Read: New India Assurance IPO: Here’s What You Need To Know