New India's IPO subscribed 1.1 times

The Rs 9,600-crore initial public offering (IPO) of New India Assurance was subscribed 1.1 times on Thursday, a day before its close. The issue was subscribed 1.04 times a day prior and saw only a few incremental bids on its second day. Bulks of the bids have come from LIC. 
 
Typically, most the bids in an IPO come on the last day. New India’s IPO comprises stake sale worth Rs 7,680 crore by the government and fresh equity issuance worth Rs 1,920 crore by the company. The fresh IPO proceeds will be used by the country’s largest general insurance company for future capital requirements, improving the solvency margin and solvency ratio.
 
The price band for the IPO is Rs 770 to Rs 800 per share, valuing the company at Rs 63,448 crore to Rs 65,920 crore. The discount of Rs 30 per share is being offered to retail investors applying in the IPO.