The stock has gained 47% over this seven trading sessions and surged to a new 52-week high of ₹215.59 apiece on Monday.
This is the longest winning streak for the stock since November 2024, when it had risen for 12 sessions in a row.
Why Are New India Assurance Shares Rising?
The stock had surged 13% in the previous session after its name appeared among the selling shareholders in the draft red herring prospectus (DRHP) filed by the National Stock Exchange (NSE) last week, ahead of its mega initial public offering (IPO).
As per the DRHP, New India Assurance Company is set to sell up 1.05 crore shares of NSE during its upcoming IPO with a face value of ₹1 each.
The state-run insurance firm is set for a major windfall through the NSE IPO, as the cost of acquisition of their shares has been listed as just ₹0.32 per share.
Stock has been an underperformer and continues to nearly 50% below its bonus-adjusted IPO price of ₹400 apiece. The insurer had issued bonus shares in the 1:1 proportion back in 2018.
As per the March quarter shareholding pattern, the government continued to hold a 85% stake in New India Assurance as per BSE, which is higher than the 75% Minimum Public Shareholding threshold.
Among the public shareholders, LIC has a 8.67% stake in the company, while General Insurance Corporation (GIC) has a 1.31% stake, leaving very little free float in the market for the company.
As many as 1.5 lakh small retail shareholders, or those with authorized share capital of up to ₹2 lakh, had a 1.8% stake in the company.
Shares of New India Assurance Company gained 6.6% to hit an intraday and 52-week high of ₹215.59 apiece on Monday. The stock is now trading 5% higher at ₹215. It has gained 28.1% in the past month and 35.5% this year, so far.
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