PSU Stock Skyrockets 14% After Plans to Offload Over 1 Crore NSE Shares in IPO

Synopsis: New India Assurance gained after announcing plans to sell 1.05 crore NSE shares in the upcoming IPO, unlocking value from its long-term investment.

This Mid-Cap Stock, engaged in providing general insurance products, including health, motor, crop, travel, fire, marine, and other commercial insurance solutions, jumped 14.24 percent after planning to offload over 1 crore NSE shares in an IPO.

With a market capitalization of Rs. 30,916.48 crores, the share of New India Assurance Company Limited has reached an intraday high of Rs. 188.50 per equity share, rising nearly 14.24 percent from its previous day’s close price of Rs. 165. Since then, the stock has retreated and is currently trading at Rs. 187.60 per equity share. 

Reason Behind the Surge

New India Assurance Company Limited gained around 14 percent after the company announced plans to participate in the upcoming NSE IPO by selling over 1 crore shares through the offer for sale (OFS). National Stock Exchange (NSE) India Limited shares are currently trading around Rs. 2,055 to Rs. 2,066 per share.  

The value of the proposed stake sale is estimated at around Rs. 2,100 crore. The market reacted positively to the development, as investors expect the stake sale to help the company unlock value from its long-held investment in the National Stock Exchange (NSE).

NSE has filed its draft red herring prospectus with SEBI for an IPO that is expected to be worth around Rs. 30,000 crore. As part of the offer, New India Assurance plans to sell approximately 1.05 crore NSE shares. Several other shareholders, including State Bank of India, Bank of Baroda, and General Insurance Corporation, are also participating in the OFS. The proposed listing is a major milestone for NSE, and investors believe it could create significant value for shareholders such as New India Assurance.

Assets Under Management (AUM)

New India Assurance Company Limited reported Assets Under Management (AUM) of Rs. 96,652 crore in FY26, compared to Rs. 98,045 crore in FY25. Despite the slight decline, the company continues to maintain a strong investment portfolio. Its large asset base supports business growth, claim settlements, and financial stability, reflecting the company’s strong position in India’s general insurance sector.

Company Overview

The New India Assurance Company Limited is a leading public sector general insurance company headquartered in Mumbai, India. Founded in 1919 by Sir Dorabji Tata and nationalized in 1973, it is majority-owned by the Government of India and remains the country’s largest non-life insurer by gross written premium and market share.

Recent Quarter Results

Coming into financial highlights, New India Assurance Company Limited’s revenue has increased from Rs. 11,664 crore in Q4 FY25 to Rs. 12,544 crore in Q4 FY26, which has grown by 7.54 percent. The net profit has also grown by 62.92 percent from Rs. 356 crore in Q4 FY25 to Rs. 580 crore in Q4 FY26. New India Assurance Company Limited’s revenue and net profit have grown at a CAGR of 6.68 percent and 10.51 percent, respectively, over the last three years.

In terms of return ratios, the company’s ROCE and ROE stand at 3.87 percent and 4.44 percent, respectively. New India Assurance Company Limited has an earnings per share (EPS) of Rs. 8.57, and it’s a debt-free company.

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