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 public offering of up to 120,000,000 Equity Shares of the Company consisting of a fresh issue of up to 24,000,000 equity shares ("Fresh Issue") and an offer for sale of up to 96,000,000 equity shares ("Offer For Sale" and together with the fresh issue, the "Offer") by The President of India, acting through the Ministry of Finance, Government of India (the "Selling Shareholder"). The Offer and the Net Offer shall constitute 14.56% and 14.13%, respectively of the post-Offer paid-up Equity Share capital of the Company.
The Offer also includes a reservation of up to 3,600,000 Equity Shares for subscription by Eligible Employees (the "Employee Reservation Portion"). The Offer will comprise the Net Offer of up to 116,400,000 Equity Shares and the Employee Reservation Portion of up to 3,600,000 equity shares.
The Company proposes to utilize the net proceeds of the Fresh Issue towards meeting future capital requirements which are expected to arise from the growth and expansion of business, improving solvency margin and consequently solvency ratio of the company.
In terms of Rule 19(2)(b)(iii) of the Securities Contracts (Regulation) Rules, 1957, as amended (the "SCRR"), the Offer is being made for at least 10% of the post-Offer paid-up equity share capital of the Company. The Offer is through the Book Building Process, in reliance of Regulation 26(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Net Offer shall be available on a proportionate basis to Qualified Institutional Buyers ("QIBs Portion"). Such numbers of Offered Shares representing 5% of the QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, subject to valid bids being received from them at or above the Offer Price. The remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received from them at or above the Offer Price.
Further, not less than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Offer shall be available for allocation, in accordance with the SEBI ICDR Regulations, to Retail Individual Investors, subject to valid Bids being received from them at or above the Offer Price. Further, up to 3,600,000 Equity Shares shall be offered for allocation and Allotment on a proportionate basis to the Eligible Employees Bidding in the Employee Reservation Portion, conditional upon valid Bids being received from them at or above the Offer Price.
All Bidders are required to mandatorily utilise the Applications Supported by Blocked Amount ("ASBA") process by providing the details of their respective bank accounts in which the corresponding Bid Amount will be blocked by the Self Certified Syndicate Banks ("SCSBs").
Kotak Mahindra Capital Company Limited, Axis Capital Limited, IDFC Bank Limited, Nomura Financial 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 Intime India Private Limited.
The Equity Shares of The New India Assurance Company Limited are proposed to be listed on the National Stock Exchange of India and BSE Limited.
Capitalised terms not otherwise defined in this press release shall have the meanings given to them in the RHP.