New India Assurance IPO is set to open for subscription on November 1, with a price band of Rs 770-800 per share.
The New India Assurance Company Limited is the oldest and largest general insurance company in India. The company was nationalized by the Government of India 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.
New India Assurance IPO Details:
- 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
The net proceeds from fresh share issue would be utilised for :-
- Branch Expansion and IT system upgrade (Rs 78.96 crore);
- Advertising, marketing and brand building activities (Rs 72.09 crore);
- Investing towards continuing interest in new mutual fund schemes managed by the company (Rs 100 crore);
- Funding inorganic growth and other strategic initiatives (Rs 165 crore)
Strengths of company
1. Market leadership and Diversified product offering.
2. Strong customer relationship & Pan indiamulti-channel distribution network