New India Assurance's mega IPO gets lukewarm response

If not for LIC, the Rs 9,600-cr offer would have struggled to garner full subscription

The Rs 9,600-crore initial public offering (IPO) of New India Assurance Company received a lukewarm response from investors, with the shares meant for retail and high net-worth individuals (HNIs) remaining undersubscribed. 

The general insurer’s maiden offer garnered just 1.2 times subscription. The qualified institutional buyer (QIB) category was subscribed 2.4 times, while that of retail and HNI investors received only 12 per cent and 11 per cent subscription, respectively.

Within the QIB category, bulk of the bids came from state-owned Life Insurance Corporation (LIC). Investment banking sources said LIC placed bids through multiple brokers, between Rs 8,000 crore and Rs 9,000 crore.