Business description from prospectus – New India Assurance 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. The company has been in operation for almost a century. In Fiscal 2017, it had the largest market share of gross direct premium among general insurers in India. As of March 31, 2017, it had issued 27.10 million policies across all product segments, the highest among all general insurance companies in India. As of June 30, 2017, its 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.
Its 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. In Fiscal 2017, its gross direct premium from fire, engineering, aviation, liability, marine, motor and health insurance represented a market share of 19.1%, 21.9%, 29.6%, 18.2%, 21.0%, 15.1% and 18.4%, respectively, of total gross direct premium in these segments in India, and it was the market leader in each such product segment.
Promoters of New India Assurance – The President of India
| New India Assurance IPO details | |
| Subscription Dates | 1 – 3 Nov 2017 |
| Price Band | INR770 – 800 per share (retail discount – INR30 per share) |
| Fresh issue | 24,000,000 shares (INR1,848 – 1,920 crore) |
| Offer For Sale | 96,000,000 shares (INR7,392 – 7,680 crore) |
| Total IPO size | 120,000,000 shares (INR9,240 – 9,600 crore) |
| Minimum bid (lot size) | 18 shares |
| Face Value | INR5 per share |
| Retail Allocation | 35% |
| Listing On | NSE, BSE |
| New India Assurance’s financial performance (in INR crore) | ||||||
| FY2013 | FY2014 | FY2015 | FY2016 | FY2017 | Q1 FY2018 | |
| Premium earned | 11,220.3 | 12,845.5 | 15,632.0 | 17,585.8 | 20,471.4 | 5,571.5 |
| Profit after tax | 883.1 | 797.3 | 1,374.3 | 934.6 | 819.8 | 499.4 |
| EPS (INR) | 44.2 | 39.9 | 68.7 | 46.7 | 41.0 | 25.0 |
The New India Assurance Company Limited
87, M.G. Road
Fort
Mumbai 400 001, Maharashtra
Phone: +91 22 2270 8263
Fax: +91 22 2265 2811
Email: [email protected]
Website: www.newindia.co.in
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg, Vikhroli (West)
Mumbai – 400 083
Phone: +91 22 4918 6200
Fax: +91 22 4918 6195
Email: [email protected]
Website: http://www.linkintime.co.in
Earnings Per Share (EPS): INR10.72
Price/Earnings (P/E) ratio: 71.83 – 74.63
Return on Net Worth (RONW): 6.81%
Net Asset Value (NAV): INR157.46 per share
New India Assurance IPO Subscription Details
| Category | Shares offered | Subscription (no. of times, at 5 PM) | ||
| Day 1 | Day 2 | Day 3 | ||
| QIB | 58,200,000 | 2.13 | 2.15 | 2.33 |
| NII | 17,460,000 | 0.02 | 0.04 | 0.11 |
| Retail | 40,740,000 | 0.01 | 0.05 | 0.11 |
| Employees | 3,600,000 | 0.03 | 0.08 | 0.19 |
| Total | 120,000,000 | 1.04 | 1.07 | 1.20 |
New India Assurance IPO allotment status is now available on Link Intime’s website. Click on this link to get allotment status.
IPO Opening Date: 1 November 2017
IPO Closing Date: 3 November 2017
Finalisation of Basis of Allotment: 8 November 2017
Initiation of refunds: 9 November 2017
Transfer of shares to demat accounts: 10 November 2017
Listing Date: 13 November 2017
Listing Price on NSE: INR750 per share (down 2.6% from IPO price for retail investors)
Closing Price on NSE: INR727.1 per share (down 5.6% from IPO price for retail investors)
Too costly.
See what happened with GIC. I think insurance companies don’t want to leave anything for investors.
It is attractively priced. Sun rise industry. Those who missed the IT boom can jump in to join the leader in Insurance Industry
Hi , EPS for 2017 is 41 and price band is 800. So should’nt PE ration be less than 20 ? Also since FY 18 figures are for a quarter , should we take EPS for the year at 100 ?
You have reasonable doubts, and obvious. One is answered by two friends Balu and bullishbear above. Other one about FY18 EPS, for valuations purpose they estimate an annualised EPS for the whole year. So that is what they will consider. Even forward EPS, for FY19.
BULL SHIT IPO
NEVER INVEST IN GOVT COS
Chaos Theory!
RKH…..
EPS for 2017 is not 41, its 10.72
How do you know?
Dhyaan se dekho, 10.72 hi mentioned hai
Phir to ye costly hua.. Topmost end of the multiple..!
NEW INDIA WILL DEFINATELY ROCKS MARKET
# ONLY GEN. INS. COMAPNY RATED “AAA” BY CRISIL
# 22000-/- CRORE ANNUAL PREMIUM
# ONLY INDIAN DIRECT INSURER WITH INTERNATIONAL “A” RATING
# TOTAL ASSET : 72576 CRORE
# NO. 1 IN TERMS OF PREMIUM, PROFIT & DISTRIBUTION NETWORK
# 1ST MNC OF INDIA, EVEN BEFORE INDEPENDENCE, LONDON BRANCH OPEND IN 1920
# NO. 1 IN CLAIMS SETTELMENT
good afternoon sir ,
i m unable to understand rating point ?
they have been rated for what? i mean wht is d criteria of rating and yaa what does this AAA and A stands for ??
i personally feel tht cost is quiet high!
this will be ur generous gesture if u will answer d abve doubts.
thank you
A.M.best is an international rating agency for Insurance. Their rating is respected worldwide like S&P. only difference is, S&P gives weigtage for the Country;s rating also. A.M. Best sees the performance, results and outlook on Insurance to give the rating. This is the only Indian Direct Insurance Company to have this rating for last 15+ years. CRISIL evaluates performance of company from Indian context. This company to be listed is having AAA with stable outlook.
We should compare this company with ICICI Lombard as both are Direct insurance companies.
Valuation of share to asset is 1.77 times which gives this scrip an edge to consider. Whereas the competitor ICICI Lombard placed it 8 times.
In insurance Company scrip we need to read this as they own large number of assets with fair valuation. I wish to Buy this IPO.
yeh dusra gic hai
NO GMP TRADES AS ON DATE
Good ipo. Better than gic. Valuation high but better than general insurance. Discount 30/- for retail. So invest this ipo.
A company with the largest distribution network of more than 2,500 offices in India. Being a PSU, will also benefit from partnerships with state and central government for implementation of various insurance schemes. A must buy in my mind.
Even the government wants to participate in the loot now. First GIC and now New India. Greedy pricing
i think needs to purchase after lising
will buy after listing.
I am loosing money in GIC so not another Insurance company.
AVOID
AVIOD
AVOID
POOR DEMAND VERY LOW SUBSCRIPTION AND DISCOUNTED LISTING
IPO INVEATORS WILL ONLY LOOSE MONEY
KEEP YOUR MONEY SAFE FROM GOVT RUN INSURANCE IPOS.
As per CRISIL Report, NIA has the largest market share among general insurers in India….. More than 25 million policies issued…… highest among all general insurance companies in India. It’s the largest player and industry trendsetter….. good investment bet.
Will consider subscribing only if the QIB and HNI response is good.
@5PB : 910(1 year target after listing)
_______________________________________
Peer :
…………………….. NiA…….. Lombard
M.cap…………….66kcr…….. 31kcr
REVENUE……… 2047cr…….983cr
PAT………………..839cr………642cr
PAT(2018)………1850cr……780cr
PE(2018)…………33…………..37
PB…………………..4.2x………..8x
2013-17
CAGR(income)… 15%………24%
CAGR(pat)………..NA………..16%
2013-18
CAGr(PAT)………..15%………16%
So yes price band is good compared to lombard and it should/must be good as this is psu firm.
Positives are high. I am Buying
Buy at listing. It will tumble like GICRE did till 780 with issue price of 861.
Day 1 is good. FII is expected only on last day as usual. Company plans 200 New branches this year. FY 18 Q1 is good. Analysts are looking at stead y price of 910. I am considering 3 lots as safe play.
To all public’s….don’t rush and increase the listing price….let it list as it is…and buy after settle…this is not D mart..this is like sbi only
Thanks for retailers ….don’t worry guys…we could buy at Rs 650 at the time of listing….it is fake valuation price from SEBI.
My advice is that its a long term investment. If you have additional fund for saving purpose, please hold this portfolio and any way Insurances Sectors are doing well and there products have become part of life.
Insurance company’s are performing good in industry. NIA is largest network and they have Good Permanent and Stander-ed Customers of Government of India and State governments also. They have network in 29 States and Union Territory also at the same time they are releasing good products. insurance is mandatory for many properties and life’s. how ever this is the best script for Being Large cap Trading in stock Market in coming days. This price will be grown up to 1500 to 1800 coming 2 years.
To all those who invested in this crap…le lo maje ab!
Flop show…
No major loss considering the discount for small investors but it just leaves a bad taste that bankers and the management couldn’t resist the temptation of earning a few crores more!
PSU management casually squanders crores here and there so expecting caution on IPO pricing is a tall order I suppose…
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