Shares of New India Assurance Company (NIAC) made a sluggish debut at bourses on Monday and ended with a sharp loss of more than 9 per cent against the issue price of Rs 800. The stock listed at Rs 748.90, down 6.38 per cent, compared to the issue price on the BSE. During the day, it tumbled 10.28 per cent to Rs 717.75. It finally ended at Rs 725.05, down 9.36 per cent.
On NSE, shares of the company settled at Rs 727.10, a loss of 9.11 per cent. In terms of equity volume, 4.30 lakh shares of the company were traded on BSE and over 25 lakh shares changed hands on NSE during the day. The company’s market valuation stood at Rs 59,744.12 crore. At the listing ceremony in Mumbai, New India Assurance chairman-cum-Managing Director G Srinivasan said, “Companies like us have large technical reserves, what is known as policy holders liabilities, outstanding claims and reserve for an expired risk. We have technical reserve of Rs 28,000 crore.”
“We have taken a lot of steps to rationalise the prices and also to manage claims more efficiently. So there is going to be a lot of improvement in the claims ratio and the combined ratio as well as the adjusted combined ratio,” Srinivasan said.