New India Assurance IPO reasonably valued

Market leader, with strong foothold in segment and healthy opportunity to improve financials

It’s a rain of Initial Public Offers of equity (IPOs) at D-Street and keeping pace with its target, New India Assurance (NIA) is to launch its offer on Wednesday. In the general insurance sector, it enjoys the status that State Bank of India or Life Insurance Corporation have in those segments, respectively.

NIA has comfortably maintained its first position across key parameters such as net worth, gross domestic premium and branch strength. And in major product categories. These factors and reasonable valuations (30 times the FY17 price to earnings) support the offer. Retail (small) investors also get a discount of