The New India Assurance Company Limited’s initial public offer to open on November 01st 2017

New Delhi, October 25, 2017: The New India Assurance Company Limited (“Company”), will be launching its initial public offering which is scheduled to open on Wednesday, November 01, 2017 and close on Friday, November 03, 2017, with a price band of Rs. 770 to Rs. 800 per Equity Share of face value of Rs. 5/- each of the Company (the “Equity Shares”). A discount of Rs. 30 on the Offer Price is being offered to Retail Individual Investors (“Retail Discount”) and to Eligible Employees Bidding in the Employee Reservation Portion (“Employee Discount”).

The initial publicoffering of up to 120,000,000 Equity Shares of the Company consisting of afresh issue of up to 24,000,000 equity shares (“Fresh Issue”) and an offer for sale of up to 96,000,000 equityshares (“Offer For Sale” andtogether with the fresh issue, the “Offer”)by The President of India, acting through the Ministry of Finance, Governmentof India (the “Selling Shareholder”).The Offer and the Net Offer shall constitute 14.56% and 14.13%, respectively ofthe post-Offer paid-up Equity Share capital of the Company.

 

The Offer also includesa reservation of up to 3,600,000 Equity Shares for subscription by EligibleEmployees (the “Employee ReservationPortion”). The Offer will comprise the Net Offer of up to 116,400,000Equity Shares and the Employee Reservation Portion of up to 3,600,000 equityshares.

 

The Company proposesto utilize the net proceeds of the Fresh Issue towards meeting futurecapital requirements which are expected to arise from the growth and expansionof business, improving solvency margin and consequently solvency ratio of thecompany.

In terms of Rule19(2)(b)(iii) of the Securities Contracts (Regulation) Rules, 1957, as amended(the “SCRR”), the Offer is beingmade for at least 10% of the post-Offer paid-up equity share capital of theCompany. The Offer is through the Book Building Process, in reliance ofRegulation 26(1) of the SEBI ICDR Regulations, wherein not more than 50% of theNet Offer shall be available on a proportionate basis to QualifiedInstitutional Buyers (“QIBs Portion”).Such numbers of Offered Shares representing 5% of the QIB Portion shall beavailable for allocation on a proportionate basis to Mutual Funds only, subjectto valid bids being received from them at or above the Offer Price. Theremainder of the QIB Portion shall be available for allocation on aproportionate basis to all QIBs, including Mutual Funds, subject to valid Bidsbeing received from them at or above the Offer Price.

Further, not lessthan 15% of the Net Offer shall be available for allocation on a proportionatebasis to Non-Institutional Bidders and not less than 35% of the Net Offer shallbe available for allocation, in accordance with the SEBI ICDR Regulations, toRetail Individual Investors, subject to valid Bids being received from them ator above the Offer Price. Further, up to 3,600,000 Equity Shares shall beoffered for allocation and Allotment on a proportionate basis to the EligibleEmployees Bidding in the Employee Reservation Portion, conditional upon validBids being received from them at or above the Offer Price.

All Bidders arerequired to mandatorily utilise the Applications Supported by Blocked Amount (“ASBA”) process by providing thedetails of their respective bank accounts in which the corresponding Bid Amountwill be blocked by the Self Certified Syndicate Banks (“SCSBs”).

Kotak MahindraCapital Company Limited, Axis Capital Limited, IDFC Bank Limited, NomuraFinancial Advisory and Securities (India) Private Limited and YES Securities(India) Limited are the Book Running Lead Managers (“BRLMs”) to the Offer. The Registrar to the Offer is Link IntimeIndia Private Limited.

 

The Equity Sharesof The New India Assurance Company Limited are proposed to be listed onthe National Stock Exchange of India and BSE Limited. 


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