New India Assurance shares rise as much as 3% to touch an early high of Rs703 as the company posted robust September quarter earnings
New Delhi: Shares of state-owned The New India Assurance Co. Ltd on Thursday rose as much as 3% to touch an early high of Rs703 as the company posted robust September quarter earnings.
Shares closed 0.29% up at Rs683.75 on the BSE, while the Sensex closed 1.06% higher at 33,106.82 points. The stock opened on a bullish note at Rs688 and jumped 3.11% to touch an intra-day high of Rs703 on the BSE. On the NSE, the stock opened at Rs692 and jumped 3.09% to touch an early high of Rs703.85.
The company on Wednesday reported that its net profit for the September quarter stood at Rs748.27 crore. Its net was Rs260.24 crore in the same quarter of last year, but the numbers are not strictly comparable as the company was not listed last year.
“The earnings have improved substantially due to drop in claims ratio and operating expenses ratio due to various steps taken by the company in the past few months. We’ve been increasing business without adding to the cost," New India Assurance chairman G. Srinivasan told reporters.
Going forward, he said the company is planning to retain its market leadership and grow in line with the market. The general insurance market is growing at 18%. He indicated that motor will continue to be its biggest segment, followed by health and crop.
The largest general insurer went public earlier this month, raising Rs9,600 crore, much lower than over Rs11,000 crore initially planned. But this still is the biggest IPO since the Rs15,000-crore Coal India issue of October 2012 .
But the company had a tepid market debut this Monday, with the scrip getting listed at Rs748.90 on the BSE, a discount of 6.4% over its issue price of Rs800.