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Mumbai: The initial public offering (IPO) of state-owned New India Assurance Co. Ltd (NIA) was subscribed 1.19 times on Friday, the last day of the share sale.

According to data from stock exchanges, as of 7pm, the portion of shares reserved for institutional investors saw a subscription of 2.34 times. The portions set aside for retail investors and non-institutional investors saw subscriptions of 11% and 12%, respectively.

On the institutional side, the IPO saw Life Insurance Corp. of India (LIC) put in a substantial bid of around $1 billion (about Rs6,500 crore), Mint reported on Thursday.

NIA’s IPO is the second largest this year after state-owned General Insurance Corp. of India Ltd’s Rs11,372 crore share sale in October.

The insurer had set a price band of Rs770-800 per share for the IPO, which values it at Rs64,392-67,940 crore. The NIA IPO will see a total stake dilution of 14.13%.

The IPO includes a fresh issue of shares worth Rs1,920 crore. NIA plans to use the proceeds from the fresh issue for augmenting its capital base to support growth and expansion of business and improving solvency margin and solvency ratio.

The government, in an offer for sale, is selling a total of 96 million shares, which at the upper end of the price band will fetch Rs7,680 crore.

Also on Friday, the Rs543 crore IPO of footwear retailer Khadim India Ltd witnessed an overall subscription of 45% on the second day of its share sale.

As of 5pm, the portion of shares reserved for institutional investors saw a meagre 9% subscription, while those set aside for retail investors and high net-worth individuals were subscribed to the extent of 84% and 3%, respectively.

Khadim has set a price band of Rs745-750 per share for the IPO. The offer will close on 6 November.

The share sale includes the issue of fresh shares worth Rs50 crore.

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