June 23, 2021 01:54 PM
3 Insurance companies file IPO papers in 3 weeks; In less than three weeks, three insurance firms, including HDFC Standard Life, have filed draft papers for IPOs that together are estimated to be worth nearly Rs20,000 crore.
With the IPO market bustling with activity, two government-owned entities—New India Assurance and General Insurance Corporation of India (GIC)—have joined the bandwagon this month. The public sector insurers are expected to hit the market in the current financial year to help the government meet its ambitious disinvestment target of Rs72,500 crore.
Amid persisting bullish market sentiments, despite intermittent volatility, around two dozen companies have filed preliminary papers for initial public offers (IPOs) with regulator Securities and Exchange Board of India (Sebi) so far this year.
3 Insurance companies file IPO papers in 3 weeks; Going by current trends, the IPO segment is expected to see better performance in 2017 compared to last year, when 26 companies collectively mopped up more than Rs26,000 crore—making 2016 the best in six years.
HDFC Standard Life Insurance is the latest company to join the IPO league and submitted draft IPO papers on 18 August. The share sale is expected to be worth around Rs7,500 crore, as per market people.
HDFC Standard Life Insurance’s IPO comprises an offer for sale of over 29.98 crore equity shares or 14.97% stake. This includes sale of 9.55% stake by HDFC Ltd and 5.42% holding by Standard Life Mauritius.
Through New India Assurance’s IPO, the government plans to sell 9.6 crore shares, besides fresh issue of 2.4 crore shares. It filed draft prospectus with Sebi on 8 August. The offer is expected to fetch more than Rs6,500 crore, people aware of it said.