New India Assurance IPO

New India Assurance Company IPO

Business description from prospectus - New India Assurance is the largest general insurance company in India in terms of net worth, domestic gross direct premium, profit after tax and number of branches as of and for the fiscal year ended March 31, 2017. The company has been in operation for almost a century. In Fiscal 2017, it had the largest market share of gross direct premium among general insurers in India. As of March 31, 2017, it had issued 27.10 million policies across all product segments, the highest among all general insurance companies in India. As of June 30, 2017, its operations were spread across 29 States and seven Union Territories in India and across 28 other countries globally through a number of international branches, agency offices and subsidiaries including a desk at Lloyd’s, London.

Its insurance products can be broadly categorized into the following product verticals: fire insurance; marine insurance, motor insurance, crop insurance, health insurance and other insurance products. In Fiscal 2017, its gross direct premium from fire, engineering, aviation, liability, marine, motor and health insurance represented a market share of 19.1%, 21.9%, 29.6%, 18.2%, 21.0%, 15.1% and 18.4%, respectively, of total gross direct premium in these segments in India, and it was the market leader in each such product segment.

Promoters of New India Assurance - The President of India

New India Assurance IPO details
Subscription Dates 1 - 3 Nov 2017
Price Band INR770 - 800 per share (retail discount - INR30 per share)
Fresh issue 24,000,000 shares (INR1,848 - 1,920 crore)
Offer For Sale 96,000,000 shares (INR7,392 - 7,680 crore)
Total IPO size 120,000,000 shares (INR9,240 - 9,600 crore)
Minimum bid (lot size) 18 shares
Face Value  INR5 per share
Retail Allocation 35%
Listing On NSE, BSE
New India Assurance's financial performance (in INR crore)
FY2013 FY2014 FY2015 FY2016 FY2017 Q1 FY2018
Premium earned 11,220.3 12,845.5 15,632.0 17,585.8 20,471.4 5,571.5
Profit after tax 883.1 797.3 1,374.3 934.6 819.8 499.4
EPS (INR) 44.2 39.9 68.7 46.7 41.0 25.0

The New India Assurance Company Limited 
87, M.G. Road
Fort
Mumbai 400 001, Maharashtra

Phone: +91 22 2270 8263
Fax: 
+91 22 2265 2811
Email:
[email protected]
Website: www.newindia.co.in

Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg, Vikhroli (West)
Mumbai - 400 083

Phone: +91 22 4918 6200
Fax: +91 22 4918 6195
Email[email protected]
Website: http://www.linkintime.co.in

Earnings Per Share (EPS): INR10.72

Price/Earnings (P/E) ratio: 71.83 - 74.63

Return on Net Worth (RONW): 6.81%

Net Asset Value (NAV): INR157.46 per share

New India Assurance IPO Subscription Details

Category Shares offered Subscription (no. of times, at 5 PM)
Day 1 Day 2 Day 3
QIB 58,200,000 2.13 2.15  2.33
NII 17,460,000 0.02 0.04 0.11
Retail 40,740,000 0.01 0.05 0.11
Employees 3,600,000 0.03 0.08 0.19
Total 120,000,000 1.04 1.07 1.20

New India Assurance IPO allotment status is now available on Link Intime's website. Click on this link to get allotment status.

IPO Opening Date: 1 November 2017

IPO Closing Date: 3 November 2017

Finalisation of Basis of Allotment: 8 November 2017

Initiation of refunds: 9 November 2017

Transfer of shares to demat accounts: 10 November 2017

Listing Date: 13 November 2017

Listing Price on NSE: INR750 per share (down 2.6% from IPO price for retail investors)

Closing Price on NSE: INR727.1 per share (down 5.6% from IPO price for retail investors)

New India Assurance IPO
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33 thoughts on “New India Assurance IPO

  • November 13, 2017 at 4:47 PM
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    No major loss considering the discount for small investors but it just leaves a bad taste that bankers and the management couldn’t resist the temptation of earning a few crores more!

    PSU management casually squanders crores here and there so expecting caution on IPO pricing is a tall order I suppose…

    Reply
  • November 13, 2017 at 10:01 AM
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    To all those who invested in this crap…le lo maje ab!

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    • November 13, 2017 at 10:46 AM
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      Flop show…

      Reply
  • November 9, 2017 at 2:12 PM
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    Insurance company’s are performing good in industry. NIA is largest network and they have Good Permanent and Stander-ed Customers of Government of India and State governments also. They have network in 29 States and Union Territory also at the same time they are releasing good products. insurance is mandatory for many properties and life’s. how ever this is the best script for Being Large cap Trading in stock Market in coming days. This price will be grown up to 1500 to 1800 coming 2 years.

    Reply
  • November 4, 2017 at 11:50 AM
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    My advice is that its a long term investment. If you have additional fund for saving purpose, please hold this portfolio and any way Insurances Sectors are doing well and there products have become part of life.

    Reply
  • November 3, 2017 at 8:00 PM
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    Thanks for retailers ….don’t worry guys…we could buy at Rs 650 at the time of listing….it is fake valuation price from SEBI.

    Reply
  • November 2, 2017 at 3:13 PM
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    To all public’s….don’t rush and increase the listing price….let it list as it is…and buy after settle…this is not D mart..this is like sbi only

    Reply
  • November 1, 2017 at 8:49 PM
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    Day 1 is good. FII is expected only on last day as usual. Company plans 200 New branches this year. FY 18 Q1 is good. Analysts are looking at stead y price of 910. I am considering 3 lots as safe play.

    Reply
  • November 1, 2017 at 3:08 PM
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    Buy at listing. It will tumble like GICRE did till 780 with issue price of 861.

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  • October 31, 2017 at 11:09 PM
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    @5PB : 910(1 year target after listing)
    _______________________________________
    Peer :
    …………………….. NiA…….. Lombard

    M.cap…………….66kcr…….. 31kcr
    REVENUE……… 2047cr…….983cr
    PAT………………..839cr………642cr
    PAT(2018)………1850cr……780cr
    PE(2018)…………33…………..37
    PB…………………..4.2x………..8x
    2013-17
    CAGR(income)… 15%………24%
    CAGR(pat)………..NA………..16%
    2013-18
    CAGr(PAT)………..15%………16%

    So yes price band is good compared to lombard and it should/must be good as this is psu firm.
    Positives are high. I am Buying

    Reply
  • October 30, 2017 at 10:24 AM
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    Will consider subscribing only if the QIB and HNI response is good.

    Reply
  • October 29, 2017 at 11:39 PM
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    As per CRISIL Report, NIA has the largest market share among general insurers in India….. More than 25 million policies issued…… highest among all general insurance companies in India. It’s the largest player and industry trendsetter….. good investment bet.

    Reply
  • October 29, 2017 at 9:01 PM
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    AVOID
    AVIOD
    AVOID
    POOR DEMAND VERY LOW SUBSCRIPTION AND DISCOUNTED LISTING
    IPO INVEATORS WILL ONLY LOOSE MONEY

    KEEP YOUR MONEY SAFE FROM GOVT RUN INSURANCE IPOS.

    Reply
  • October 28, 2017 at 7:59 PM
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    will buy after listing.

    I am loosing money in GIC so not another Insurance company.

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  • October 28, 2017 at 4:09 PM
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    i think needs to purchase after lising

    Reply
  • October 28, 2017 at 1:46 PM
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    Even the government wants to participate in the loot now. First GIC and now New India. Greedy pricing

    Reply
  • October 28, 2017 at 1:25 PM
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    A company with the largest distribution network of more than 2,500 offices in India. Being a PSU, will also benefit from partnerships with state and central government for implementation of various insurance schemes. A must buy in my mind.

    Reply
  • October 26, 2017 at 11:20 PM
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    Good ipo. Better than gic. Valuation high but better than general insurance. Discount 30/- for retail. So invest this ipo.

    Reply
  • October 26, 2017 at 11:02 PM
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    NO GMP TRADES AS ON DATE

    Reply
  • October 26, 2017 at 1:30 PM
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    NEW INDIA WILL DEFINATELY ROCKS MARKET
    # ONLY GEN. INS. COMAPNY RATED “AAA” BY CRISIL
    # 22000-/- CRORE ANNUAL PREMIUM
    # ONLY INDIAN DIRECT INSURER WITH INTERNATIONAL “A” RATING
    # TOTAL ASSET : 72576 CRORE
    # NO. 1 IN TERMS OF PREMIUM, PROFIT & DISTRIBUTION NETWORK
    # 1ST MNC OF INDIA, EVEN BEFORE INDEPENDENCE, LONDON BRANCH OPEND IN 1920
    # NO. 1 IN CLAIMS SETTELMENT

    Reply
    • October 27, 2017 at 3:32 PM
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      good afternoon sir ,
      i m unable to understand rating point ?
      they have been rated for what? i mean wht is d criteria of rating and yaa what does this AAA and A stands for ??
      i personally feel tht cost is quiet high!
      this will be ur generous gesture if u will answer d abve doubts.

      thank you

      Reply
      • October 29, 2017 at 9:03 PM
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        A.M.best is an international rating agency for Insurance. Their rating is respected worldwide like S&P. only difference is, S&P gives weigtage for the Country;s rating also. A.M. Best sees the performance, results and outlook on Insurance to give the rating. This is the only Indian Direct Insurance Company to have this rating for last 15+ years. CRISIL evaluates performance of company from Indian context. This company to be listed is having AAA with stable outlook.
        We should compare this company with ICICI Lombard as both are Direct insurance companies.
        Valuation of share to asset is 1.77 times which gives this scrip an edge to consider. Whereas the competitor ICICI Lombard placed it 8 times.
        In insurance Company scrip we need to read this as they own large number of assets with fair valuation. I wish to Buy this IPO.

        Reply
  • October 26, 2017 at 12:16 PM
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    EPS for 2017 is not 41, its 10.72

    Reply
    • October 26, 2017 at 2:21 PM
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      Dhyaan se dekho, 10.72 hi mentioned hai

      Reply
      • November 1, 2017 at 6:29 PM
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        Phir to ye costly hua.. Topmost end of the multiple..!

        Reply
  • October 25, 2017 at 8:55 PM
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    Chaos Theory!

    RKH…..

    Reply
  • October 25, 2017 at 6:42 PM
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    BULL SHIT IPO
    NEVER INVEST IN GOVT COS

    Reply
  • October 25, 2017 at 5:26 PM
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    Hi , EPS for 2017 is 41 and price band is 800. So should’nt PE ration be less than 20 ? Also since FY 18 figures are for a quarter , should we take EPS for the year at 100 ?

    Reply
    • November 1, 2017 at 6:25 PM
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      You have reasonable doubts, and obvious. One is answered by two friends Balu and bullishbear above. Other one about FY18 EPS, for valuations purpose they estimate an annualised EPS for the whole year. So that is what they will consider. Even forward EPS, for FY19.

      Reply
  • October 25, 2017 at 4:09 PM
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    Too costly.

    See what happened with GIC. I think insurance companies don’t want to leave anything for investors.

    Reply
    • October 28, 2017 at 3:06 PM
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      It is attractively priced. Sun rise industry. Those who missed the IT boom can jump in to join the leader in Insurance Industry

      Reply

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