New India Assurance (NIA), the largest general insurer in India, is expected to sell 15% of its business to raise close to US$1.2 billion (Rs 8,000 crore), it has been reported.
The IPO will include 5% fresh equity and will take place in the next six to eight months, according to a report in The Economic Times.
NIA has already applied to the Insurance Regulatory and Development Authority (IRDAI) for an in-principle approval for the IPO, sources told the publication. G Srinivasan, chairman of NIA, has said that no decision has yet been taken on the proposed IPO.
The firm recorded 22% growth in profit after tax in the last financial year as investment income increased. Following reported underwriting losses during the past year, the firm expects to break even in the next three years.
Currently, the Indian Government controls 100% of five public sector insurers – NIA, National Insurance, United Insurance, Oriental Insurance and reinsurance firm General Insurance Corporation (GIC Re).
The Government is looking to raise billions of dollars as it sells off chunks of the firms, with GIC Re and NIA already having selected investment bankers as they look to list.
Related stories:
Lloyd’s India expansion nets another firm
GIC Re, NIA IPOs on the horizon in key market
.jpg)
