The finance ministry is working on a plan to list state-run insurance giants, starting with New India Assurance. Others on the list include Oriental Insurance, National Insurance and United Insurance. New India and GIC have already taken board approvals to float initial public offers (IPOs).
Officials said the IPOs could be issued after the companies split their shares to make them affordable for retail investors. However, the main target of the float will be financial entities such as banks, pension funds, mutual funds, FIIs and sovereign wealth funds.
New India, which was founded by the Tatas at the end of World War I and nationalised in the 1970s, has assets of over Rs 60,000 crore and premium income of over Rs 18,000 crore. It is rated as one of the biggest insurers in the country. Analysts believe a 10 per cent share float in the insurer could fetch Rs 5,000 crore.