New India Assurance lists at discount

New India Assurance made a very tepid debut on the bourses today. As against the IPO price of Rs.800, it got listed on the BSE at Rs.748.90, a discount of over 6%.

The largest general insurance company of India, the huge issue of Rs.9600 crore was subscribed 1.19 times, with giant chunk getting subscribed by QIBs at 2.34 times; HNIs was at 0.12 times and retail investors was at 0.11 times.

In our New Issue Analysis section, labeling it as “not very assuring,” we had said, “weak fundamentals and unattractive pricing make this IPO an avoid.