About the Company:
New India Assurance Co Ltd, today, is a 100 % Govt owned multinational general insurance company operating in 28 countries and headquartered at Mumbai, India.
Previously it was a subsidiary of the General Insurance Corporation of India (GIC). But when GIC became an re-insurance company as per the IRDA Act 1999, its four primary insurance subsidiaries New India Assurance, United India Insurance, Oriental Insurance and National Insurance got autonomy.
Company is the largest general insurance company in India in terms of net worth, domestic gross direct premium, profit after tax and number of branches as of and for the fiscal year ended March 31, 2017.
In Fiscal 2017,they had the largest market share of gross direct premium among general insurers in India.
As of March 31, 2017,Company had issued 27.10 million policies across all product segments, the highest among all general insurance companies in India.
As of June 30, 2017,Company’s operations were spread across 29 States and seven Union Territories in India and across 28 other countries globally through a number of international branches, agency offices and Subsidiaries including a desk at Lloyd’s, London.
Company’s insurance products can be broadly categorized into the following product verticals: fire insurance; marine insurance, motor insurance, crop insurance, health insurance and other insurance products.
The distribution network in India included 68,389 individual agents and 16 corporate agents, bancassurance arrangements with 25 banks in India.
Company has developed a pan-India branch network and had around 2,452 offices in India across 29 States and seven Union Territories.
They also partner with the GoI and State governments for implementation of various government schemes including health insurance and policies for underprivileged customer segments.
Company’s international operations is spread across 28 countries, through a number of international branches, agency offices, subsidiaries and associated companies.
Company’s Products:
Company’s Product portfolio can be divided into the following broad products:
Fire Insurance: Fire insurance portfolio includes fire and special perils insurance, business interruption insurance, and large risk package insurance policies.
Marine Insurance: Marine insurance business includes marine cargo insurance, hull and machinery insurance and offshore oil and energy insurance products.
Motor Insurance: Motor insurance portfolio includes liability only (third party) policies and comprehensive motor (third party and own damage) policies.
Crop Insurance: Crop insurance products include Pradhan Mantri Fasal Bima Yojana farmers package insurance, weather based crop insurance, unified package insurance schemes and horticulture / plantation insurance.
Health Insurance: Health insurance products include individual health products such as mediclaim, floater and premier mediclaim products; corporate (group) health insurance products; and personal accident products and schemes implemented for the GoI such as the Rashtriya Swasthiya Bima Yojana, PMSBY and PMJDY.
Other Insurance: It includes a broad range of general insurance products under this category, including the following: liability insurance; engineering insurance; aviation insurance etc.
Management Team:
- Mr. G. Srinivasan (Designation: Chairman cum Managing Director)
- Mr. Lok Ranjan (Designation: Non-Executive and Government Nominee Director)
- Mr. Hemant G. Rokade (Designation: Whole-time Director)
Objectives of the Issue:
Offer for Sale:(Around Rs.7,680 crores/ $1.18 Billion)
- The proceeds of the Offer for Sale shall be received by the Selling Shareholder.Company will not receive any proceeds from the Offer for Sale.
Fresh Issue: (Around Rs.1,920 crores / $295.3 million)
- Company proposes to utilize the Net Proceeds towards meeting the future capital requirements which are expected to arise from the growth and expansion of the business, & also for improving the solvency margin and the solvency ratio.
Positives for the Company:
- Experienced senior management team.
- Market leadership and established brand.
- Longstanding global footprint and successful international operations.
- Sustainable business model driven by customer satisfaction.
- Diversified product offering and product innovation capability.
- Multi-channel distribution network.
- Robust financial position.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 30th June 17 |
|---|---|---|---|---|---|---|
| Revenue | 11,220.3 | 12,845.5 | 15,632 | 17,585.8 | 20,417.4 | 5,571.5 |
| Net Profit | 883.1 | 797.3 | 1,374.3 | 934.6 | 819.8 | 499.5 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| New India Assurance Company Ltd | 5 | 10.72 | 74.62 | 6.81 | 157.46 |
| ICICI Lombard General Insurance Company Ltd | 10 | 14.32 | 47.45 | 18.44 | 82.57 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 1st November 2017 |
| Issue Closes on:. | 3rd November2017 |
| Issue Price | Rs.770 – 800 |
| Face Value | Rs.5 |
| Minimum Lot | 18 |
| Retail & Employee Discount | Rs.30 per share |
| Minimum Investment (Retail) | Rs.13,860 |
| Issue Constitutes | 14.56% |
| Issue Size | Rs.9,600 cr ($ 1.47 billion) |
| Market Cap | Rs.65,920 cr ($ 10.14 billion |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 2,40,00,000 |
| Equity Shares Offered (OFS) | 9,60,00,000 |
| Equity Shares Offered (Fresh + OFS) | 12,00,00,000 |
| Equity Shares Prior | 80,00,00,000 |
| Equity Shares after the issue | 82,40,00,000 |
Important Dates:
| Finalization of Basis of Alottment | on or Before 8th November 2017 |
| Initiation of Refunds | on or Before 9th November 2017 |
| Credit of Equity Shares: | on or Before 10th November 2017 |
| Listing Date: | on or Before 13th November 2017 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 04:10 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 5,82,00,000 | 2.14 | 2.157 | 2.36 |
| NII | 1,74,60,000 | 0.021 | 0.0374 | 0.114 |
| Retail | 4,07,40,000 | 0.023 | 0.0544 | 0.097 |
| Employee | 36,00,000 | 0.03 | 0.086 | 0.185 |
| TOTAL | 12,00,00,000 | 1.0414 | 1.073 | 1.195 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 10.72 | 74.62 | 6.81% | 157.46 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Avoid | NA | NA |
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| Company Contact Info: |
|---|
| The New India Assurance Company Limited 87, M.G. Road Fort Mumbai – 400 001 Maharashtra, India Tel: +91 22 2270 8263 Fax: +91 22 2265 2811 Website: www.newindia.co.in |
| IPO Registrar Info: |
|---|
| Link Intime India Limited C-101, 1st Floor 247 Park, Lal Bhadur Shastri Marg Vikhroli (West) Mumbai 400 083 Maharashtra, India Tel: +91 22 4918 6200 Fax: +91 22 4918 6195 E-mail: nia.ipo@ linkintime.co.in Investor grievance e-mail: nia.ipo@ linkintime.co.in Website: www.linkintime.co.in |
