August 11, 2017
India’s largest general insurer, the government-owned New India Assurance, has filed a draft red herring prospectus with the Securities and Exchange Board of India for a public listing.The IPO comprises a fresh issue of 24 million shares by the company, and the sale of 96 million shares by the government. The flotation exercise is expected to raise around US$1.5 billion.
The public issue will result in a 14.56% stake dilution for the government in the general insurance firm. The government will have a grace period of three years from the date of listing to meet the minimum public shareholding requirement of at least 25% shares held by the public.
The shares will be listed on the Bombay Stock Exchange and the National Stock Exchange of India.