State-Run Insurance Firms Likely to Gain Around ₹7,200 Crore from NSE IPO

Five public sector insurance companies could make gains of around ₹7,200 crore from the proposed IPO of the National Stock Exchange (NSE), as per The Economic Times news report. The estimate is based on an assumed IPO valuation of ₹1,800 per share. 

Five Insurers Hold NSE Shares 

As per the report, the 5 insurers together hold around 165 million NSE shares. Under the proposed IPO, they are expected to sell around 40 million shares. 

GIC holds the largest stake among them with about 10.7 million shares to be sold. New India Assurance plans to sell around 10.4 million shares, while National Insurance, United India Insurance and Oriental Insurance are expected to sell around 6 million, 6 million and 5 million shares respectively. 

The actual amount they make will depend on the final IPO price, which has not been fixed yet. 

IPO Could Help Insurers' Solvency 

The sale could also give some of the state-run insurers extra funds to improve their financial position. National Insurance, United India Insurance and Oriental Insurance together hold about 90 million NSE shares and may retain around 73 million after the proposed sale. 

At an assumed price of ₹1,800 per share, these remaining shares would be worth around ₹13,100 crore. 

Oriental Insurance had reported a solvency ratio of negative 1.03 as of March 2025. National Insurance stood at negative 0.67, while United India Insurance reported negative 0.65. 

LIC and Other Insurers Also Hold NSE Shares 

LIC, the biggest shareholder in NSE, holds around 265.28 million shares, or 10.72% of the exchange. It is not selling its shares in the IPO. 

HDFC Life holds about 12.38 million NSE shares and SBI Life has around 8.21 million. Neither is participating in the offer. 

ICICI Lombard, meanwhile, plans to sell 2.35 million NSE shares while keeping around 21.15 million. At an IPO price of ₹1,800, the sale could give ICICI Lombard a gain of about ₹383 crore. 

Read More: SBI, IFCI, GIC, and Bank of Baroda Share Price in Focus Post SEBI Nod to NSE IPO! 

Conclusion 

The proposed NSE IPO could give five public sector insurers an opportunity to make sizeable gains from their existing holdings. The final gains will depend on the IPO price and the number of shares each insurer sells. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.