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IPO News: GIC and New India Assurance to file for IPO

General Insurance Corporation of India (GIC) and New India Assurance (NIA) are to file for an initial public offering (IPO) in the coming couple of weeks.

The flashback

While GIC is a government-owned re-insurance company, New India Assurance is an autonomous general insurance company which was earlier, alongside four others, a subsidiary of GIC until GIC became a re-insurance company. The latest developments however bring them together to file for an IPO.

Last week, OneInsure informed you about SBI divesting its stake from SBI Life and filing with the insurance regulator IRDAI for IPO with an aim to raise about ₹1 billion. Later, OneInsure informed you that HDFC may as well file for an IPO in case HDFC-Max Life merger decision was to be kept on the back burner. And now, GIC and New India Assurance are set to join in the queue with other insurers who have either already filed or are planning to file for an IPO.

Insights of GIC-New India Assurance IPO

  • The government is expected to divest as much as 10% of its stake from both the companies for initial public offering
  • From its IPO, the government is likely to raise ₹10,000 crores
  • Axis Capital, Citibank, Deutsche Bank, HSBC and Kotak Mahindra Capital Co. Ltd have been approached by GIC to look after the management of IPO
  • Yes Bank, Kotak Mahindra Capital, Axis Capital, Nomura and IDFC have been chosen by New India Assurance to manage the IPO

With more and more companies considering to divest their stake and file for an IPO, insurance sector is set to witness considerable change in the coming decades. Tune in to OneInsure for latest news on the same.

(Source and Credits: Live Mint)

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