Two non-life insurance firms in India are likely to see their IPOs in 2018, while three others might go public in subsequent years.
New India Assurance and General Insurance Corporation of India (GIC Re) will probably be hitting capital markets in 2018, following the government’s move to reduce its stake to 75% from 100% in the insurers, moneycontrol reported.
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Last month, the Cabinet approved the listing of the two said companies along with Oriental Insurance Company, National Insurance Company, and United India Insurance.
The public listing may be staggered to give investors enough time between each initial offer, moneycontrol said.
“We do not want investor appetite to wane with multiple listings in the same year. Hence, the government may decide on only one or two listings for FY18,” said the chairman of a public sector general insurance company.
The solvency ratios of National Insurance (126%) and Oriental Insurance (11%) are below the prescribed minimum limit of 150%.
In September last year, ICICI Prudential Life Insurance listed on the National Stock Exchange. It was the first insurance company to do so.
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