Summary :
New India Assurance shares surged nearly 14% on June 18 after the insurer announced plans to sell 1.05 crore shares in the upcoming NSE IPO. Investor sentiment improved as the proposed stake sale is expected to unlock value for shareholders. NSE has filed its DRHP for a ₹30,000 crore IPO, with the issue comprising entirely an Offer for Sale (OFS) of 14.89 crore shares. New India Assurance is among the key selling shareholders alongside SBI, GIC Re and Bank of Baroda. The NSE IPO, expected to be one of India's largest public issues, marks a significant milestone in the exchange's long-awaited listing journey.
The shares of New India Assurance Company Ltd. rallied strongly on June 18, climbing by about 14% in response to positive sentiment generated by the inclusion of the company in the soon-to-be-launched IPO on the National Stock Exchange (NSE).
In intra-day trade, the stock rose to ₹188 per share – an increase of up to 13.62%. At 9:45 AM, the price had risen 12.60% to ₹186.31 per share. After this rally, the market capitalization of the company increased to ₹30,677.52 crore.
It is worth noting that the rally follows a period of gains for the shares. Over the past week, the stock has climbed by 26.73% while rising 14.53% over the last month. On a year-to-date basis, the stock has gained 19.73% in value, showing investor confidence.
Although the stock has performed well recently, it is still lower than its all-time high, recorded at ₹214.74 on July 31, 2025. This year, its lowest point was recorded at ₹116.97 per share on March 30, 2026.
NSE Files DRHP for Landmark IPO
This jump in share prices of New India Assurance was made following NSE filing of Draft Red Herring Prospectus (DRHP) with SEBI regarding the highly awaited initial public offering.
According to the proposal, the issue will consist solely of Offer for Sale (OFS). This involves offering a total of 14.89 crore equity shares to the market. The transaction will enable corporate shareholders to reduce their stakes in the exchange to about 6% through sale.
In the list of the selling shareholders, the top position is held by State Bank of India, which will be selling as many as 2.48 crore shares. Other selling parties include MS Strategic (Mauritius) Limited, selling 1.60 crore shares; Canada Pension Plan Investment Board with 1.19 crore shares; Aranda Investments – Mauritius selling 1.12 crore shares; Bank of Baroda offering 1.10 crore shares; and Stock Holding Corporation of India selling 1.09 crore shares.
General Insurance Corporation will sell 1.07 crore shares. The company New India Assurance will dispose of 1.05 crore shares. On the other hand, National Insurance Company and United India Insurance will both sell 0.60 crore shares each.
One of India's Biggest Public Issues
Based on market expectations, the valuation of the NSE IPO can reach up to ₹30,000 crore, making this one of the largest IPOs in the history of India's capital markets.
Previously, in 2016, the NSE had filed for IPO documents with intentions to raise ₹10,000 crore through an OFS. Due to governance issues and the co-location dispute, the IPO could not get regulatory approval until now.
For the current IPO, the company has hired 20 merchant banks for handling the IPO process, and MUFG Intime India has been appointed as the IPO registrar. After the successful completion of the IPO, the shares of NSE will trade on the BSE platform.
This recent share sale is likely to unlock value for a few stakeholders, with New India Assurance among the major beneficiaries, which is evident from the sharp rise in its share prices.
