New India Assurance Falls 10.3% Over IPO Price On Stock Market Debut
New India Assurance Company made its stock market debut at a discount of 6.4% at Rs 748.90 per share.
New India Assurance Company made its stock market debut at a discount of 6.4 percent at Rs 748.90 per share compared to an issue price of Rs 800 apiece. The stock fell close to 10.32 percent to Rs 717.40 thereafter.
The century-old insurer's Rs 9,600 crore initial public offer saw moderate demand with bidders subscribing 1.19 times till the final day. Most of the demand came in from qualified institutional buyers. This was the second-largest IPO this year after General Insurance Corporation of India Ltd. raised Rs 11,372 crore.
The insurer sold shares at Rs 770-800 apiece via the IPO, valuing the company at up to Rs 65,920 crore.
The country’s largest general insurer will use the proceeds from the share sale to increase its capital base to support growth, according to its draft papers. It will also increase the scale of its business.
