new india assurance ipo, listing of general insurance companies
The Bombay Stock Exchange (BSE) building in Mumbai in this file photo on November 9, 2016.IANS

New India Assurance, which filed initial public offering (IPO) documents with the regulator for its proposed public issue, is likely to see its valuation pegged at about Rs 70,000 crore, according to a report in the Economic Times (ET).

The state-owned general insurer is planning to sell 12 crore shares comprising 2.4 crore new shares and an offer for sale of up to 9.6 crore shares, according to the offer documents.

New India Assurance has issued 2.7 crore policies across various product segments as of June 30 while its net worth was Rs 34,716 crore as of March 31, 2017.

The Centre had decided in January this year to list New India Assurance Co, United India Insurance, Oriental Insurance, National Insurance Company and General Insurance Corporation. The listing would see the government's stake fall to 75 percent from the current 100 percent.

"Listing will open the way for the companies to raise resources from the capital market to meet their fund requirements to expand their businesses, instead of being dependent on the government for a capital infusion," the finance ministry had said on January 18.

Private sector insurers are also active in seeking listing on the bourses. While ICICI Prudential Life Insurance debuted last September, SBI LIfe Insurance is likely to hit the primary markets this fiscal. General insurer ICICI Lombard Insurance has also filed for an IPO.

ICICI Lombard General Insurance, a joint venture of ICICI Bank and Fairfax. The proposed IPO will see ICICI Bank offload 7.15 percent stake while Fairfax's holding will be down by 12.27 percent, according to a report in the Mint last month. 

The overall offer will be about 86 million shares in the nature of offer for sale.