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New Delhi: The Rs9,600 crore initial public offering (IPO) of state-owned general insurance firm New India Assurance Co. Ltd was subscribed 1.04 times on Wednesday, the first day of the share sale.

The New India Assurance IPO is the second largest so far this year after state-owned General Insurance Corp. of India Ltd’s (GIC Re’s) Rs11,372 crore share sale in October.

The portion of shares reserved for institutional investors saw a subscription of 2.13 times, while that reserved for retail investors and high net-worth individuals (HNIs) saw timid subscriptions. They were both subscribed 2% or 0.02 times each. The IPO received bids for 123,062,976 shares against the total issue size of 120,000,000 shares, data available with the NSE till 4pm showed.

The New India Assurance IPO comprises sale of 9.6 crore shares by the government, besides fresh issue of 2.4 crore shares. Thus, a total of 12 crore shares of the general insurance firm will be sold through the share sale offer, constituting around 14.56% of the company’s post issue share capital.

The insurance firm has set a price band of Rs770-800 for the IPO, which values it at Rs64,392-67,940 crore. The offer will close on 3 November and will see a total stake dilution of 14.13%.

New India Assurance has assets of over Rs69,000 crore and has been growing at a compounded annual growth rate (CAGR) of over 15% for the last five years. Kotak Mahindra Capital Co. Ltd, Axis Capital Ltd, Nomura Financial Advisory and Securities (India) Pvt. Ltd, IDFC Bank Ltd and Yes Securities are the investment banks managing the IPO.

PTI contributed to this story.

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