On Wednesday, the National Insurance Company said that it is ready if the authority starts the procedure of listing of state-run general insurance companies on the stock exchanges.
“In principle, the government announced that government-owned companies would be up for listing. We are ready if they want to start the process. It’s the government’s call, they have to take it,” Chairman-Cum-Managing Director K. Sanath Kumar said.
“Our company is fully owned by the government. So there has never been any need for valuation so far. But for listing, we have to transform our company into a public company owned by the government. For which we have to have a valuation,” he said.
During the budget 2016 presentation, the Union Finance Minister Arun Jaitley had declared that the general insurance companies owned by the government will be listed in the stock exchanges to help transparency and accountability.
Sanath Kumar said the face value of shares is required to be brought down to attract participation of retail investors.
“There will be long procedures to follow and all including the brand equity should be valued. If the process starts, it usually takes about 9-10 months to be completed,” he said.
The general insurer collected Rs.11,200 crore total premium in the 2014-15 fiscal and is expecting to cross Rs.12,000 crore this year. “We are experiencing a subdued growth,” he added.