MUMBAI (Oct 24): New India Assurance Co Ltd is targeting an IPO of up to US$1.5 billion, as sources who have direct knowledge of the matter told Reuters on Tuesday the state-run company had set a price band of 770 rupees to 800 rupees (US$11.85-US$12.31) a share for the offer.
The initial public offering (IPO) of India's biggest general insurer is set to remain open for subscription from Nov 1 to Nov 3, according to its regulatory filing. The IPO would raise 96 billion rupees (US$1.48 billion) at the upper end of the price range provided by the sources.
The Indian government, which fully owns the insurer, is selling 96 million shares in the IPO, while the company will sell 24 million new shares. The total issue will constitute 14.56% of the post offer paid-up share capital of the company.
Retail investors will be given a discount of 30 rupees on the offer price, according to the filing.
New India Assurance was not immediately available for comment. The insurer has scheduled a press conference on Wednesday to share details of the IPO. The sources declined to be identified because the information is not public.
Indian companies have raised about US$8 billion through IPOs so far this year, not far from the record US$8.65 billion garnered in 2007, driven in large measure by a slew of listings from state-run insurers or units of state-run lenders.
Government-owned reinsurer General Insurance Corp of India, for example, is set to make its debut on Wednesday after its IPO raised US$1.7 billion earlier this month.
Kotak Investment Banking, Axis Capital, IDFC Bank, Nomura and Yes Securities are the banks managing New India Assurance's IPO.
(US$1 = 65.0000 Indian rupees)