Business Mantra News
IPO of New India Assurance Co. Ltd.
- Initial Public Offer (IPO) of Rs.9600 Crores, from the public sector insurance company was fully subscribed on the very first day, of which 95% was subscribed on the very first four hours of its opening.
- The company has offered shares of the face value of Rs.5/- at a price band between Rs.770-800 per share, with a discount of Rs.30/- to its staff.
- The issue has been on demand to investors may it be small or institutional. As on the first day’s close of business there were bids of 1251.19 Lakh Shares as against the total issue of 1200 Lakh Shares.
- Qualified Institutional Buyers (QIB) has a quota of 582 Lakh shares, whereas total demand from QIB has been received for 1239.19 Lakh Shares.
- This issue is likely to be over-subscribed by 2.5 times within the earliest closing date.
- This issue has been announced after the issue of General Insurance Company, ICICI Lombard General Insurance and SBI Life Insurance. These three insurance companies have collected Rs.25470 Crores during 2017
HDFC Life goes to IPO on 7th November, 2017 and desires to acquire more small insurance companies.
- HDFC Life is going public with its initial offer of Rs.8700 Crores, by offering equity shares within a price band of Rs.275-290 on 7th of November, 2017.
- Promoter Company HDFC wants to dilute its equity stake up-to 9.52 percent and the other promoter Standard Life shall have to shed 5.4 percent of their shares with this IPO.
- Earlier the merger between Max Life and HDFC Life was not successful but HDFC Life has still desired to acquire, if the issues which hampered the merger get resolved.
- Moreover HDFC Life is hopeful of acquiring any other small insurance company if opportunity arises.