The Insurance Regulatory and Development Authority (Irda) has given its in-principle approval to the National Insurance Company to list its shares, as the state-run insurer has strengthened its balance sheet and improved solvency margins.

Kolkata-based National Insurance will become the second state-run general insurer to list after New India AssuranceBSE 0.43 %, and investors may value the company at Rs 25,000 crore. National Insurance had approached Irda for approval to list in October this year.
A 15 per cent divestment could fetch the government Rs 3,750 crore, equity analysts estimate. The company would be valued at Rs 25,000 crore based on its investment book, net worth and real estate assets. These are estimates and the final valuation, linked to market conditions, could be vastly different from what is being discussed now.

ICICI Lombard became the first general insurer to list this year and is trading at a market value of Rs 32,000 crore after its IPO scraped through.
 

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