New India, SBI Life and GIC plans IPO to raise funds

The public sector companies like New India Assurance, SBI Life Insurance, General Insurance Corp. of India (GIC plans to launch their IPOs to raise funds of Rs. 70,000 crores, Rs. 7,000 and Rs. 10,000 crores respectively.  For GIC, the draft red herring prospectus (DRHP) is filed and it will see a stake dilution of 14.22%.  The appointed investments bankers involve Citigroup, Axis Capital, Deutsche Bank, HSBC and Kotak Mahindra Capital Co. Ltd to manage the public offering. For New India Assurance, the offer document was filed to sell about 12 crore shares or 15% of the company. It had a net worth, including fair value of investments, of Rs 34,716 crores at the end of March 31, 2017. The market value of investment is Rs 53,009 crores and its asset base was Rs 69,173 crores. Axis Capital, Kotak Mahindra Capital, Yes Securities, IDFC Capital and Nomura are among the lead managers for sale. SBI Life Insurance’s IPO will feature the State Bank of India and its joint venture partner BNP Paribas selling 80 million and 40 million shares, respectively, reflecting 12 % stake. In December 2016, the SBI informed the Bombay Stock Exchange that the Executive Committee of the Central Board (ECCB) of the bank had approved divesting 39 million equity shares, constituting 3.9 % in SBI Life Insurance Company, at Rs 460 per share, subject to regulatory approvals. In January 2017, the Central Government had approved the listing of general insurance companies. The Government currently holds 100 % in 5 public sector insurers -New India Assurance, National Insurance, United Insurance, Oriental Insurance and reinsurance company General Insurance Corporation.