The famous insurance company of the general insurance industry- National Insurance Company is all set to receive around Rs 5000 crore through the proceeds of the planned public offer.
According to the sources, the National Insurance Company (NIC) which is completely owned by the government of India, would use the amount to boost its capital base just to maintain the solvency margins. The quantum related to the stake dilution would be confirmed by the government, sources confirmed.
CMD of NIC K Sanath Kumar said that the company had already submitted its request to The Insurance Regulatory Authority Of India (IRDAI) after getting the mandatory permission from the government.
“After the IRDA approval, the government will decide on the stake dilution and form,” he said.
Further, he added that the NIC is looking forward to the IPO and hopefully it would surely hit the market by the end of this financial year as the general insurance industry is quite active these days.
Kumar said that the company has been able to perk up the solvency margins just by increasing the net worth.
“The network has been increased by the NCD (Non-Convertible Debentures) issue of Rs 900 crore and also by way of increasing the book value,” he said.
Moreover, it has also submitted a roadmap to the government and the IRDA, he said.
Currently, the aim of the NIC in terms of the premium collection is Rs 16,000 crore compared to last fiscal where it was around 14,256 crore, he said.