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New India Assurance files for IPO

New India Assurance Co. Ltd. filed a preliminary prospectus for its proposed IPO of 120 million shares.

The planned IPO will consist of a fresh issue of 24 million equity shares and an offer for sale of up to 96 million equity shares. The IPO shall constitute 14.56% of the fully diluted post-offer paid-up equity share capital of the state-owned insurer.

The share sale is subject to necessary approvals.

The insurer said it will use proceeds to meet future capital requirements, among other things, according to the Aug. 8 draft red herring prospectus.

Kotak Mahindra Capital Co. Ltd., Axis Capital Ltd., IDFC Bank Ltd., Nomura Financial Advisory and Securities (India) Private Ltd., and YES Securities (India) Ltd. are serving as book-running lead managers for the IPO.

The share sale is expected to garner around 100 billion Indian rupees, Mint reported, citing "two people aware of the plans." The government is likely to raise around 70 billion rupees from the sale of its shares in New India Assurance, according to the report.

Earlier in 2017, the government announced plans to list five state-owned general insurers and reduce its stake in the companies to 75% from 100%. In April, the government hired eight investment banks to manage the IPO of New India Assurance and General Insurance Corp. of India, which also filed for an IPO recently.

As of Aug. 9, US$1 was equivalent to 63.86 Indian rupees.