National Insurance Co. Ltd is all set to become the second state-run general insurance company of India as it has filed with the IRDA for the selling of shares that may cost around Rs 25000 crore. The company is looking forward to the IRDA Approval on the same.
During the last year, the state-run general insurance company solvency margin rose to 1.90 from 1.26. The solvency of insurance is alike to the capital adequacy for banks. Right now only the estimated value is out, that means the original value would be vastly different.
“We have approached the Irda for an IPO earlier this month,“ said K Sanath Kumar chairman, National Insurance Company. “We are looking to list the company by March.“
Right now, ICICI Lombard general insurance company is the first insurance company to list this year with the trading value of around Rs.32000 crore post its IPO scraped through. New India Assurance is also looking forward to hit the streets of the market in the coming weeks.
After getting the approval from the respective authority the national insurance company would start ding Roadshows to meet the potential investors in all over the world and will discuss with the government to finalize the exact valuation.
National Insurance has registered a net profit before tax of Rs 49 crore in 2016-17. It is the third-largest general insurance company that holds 10.29 percent market share. Its gross written premium income grew 17.73 percent to Rs 7,469 crore in the first half of the fiscal ending September 30, 2017.