New India Assurance Shares Fall 10% On Trading Debut

Mumbai: State-run New India Assurance Co Ltd's shares fell as much as 10 per cent on their trading debut on Monday, following an initial public offering (IPO) that saw the government and company raise a combined Rs 9,600 crore ($1.47 billion).

Analysts had expected a weak opening for the top Indian non-life insurer as demand for the issue was only 1.2 times the number of shares on offer, indicating relatively low interest in what has been a record year for IPOs in the country.

By 10 am, New India Assurance shares were trading down 9.4 per cent at Rs 724.85 compared with an IPO issue price of Rs 800. The benchmark Nifty 50 share price index was down 0.3 per cent.

($1 = Rs 65.2850)