It closed at ₹725.05, which is 9.37% lower than the issue price.
New India Assurance Co Ltd's shares tumbled 9 percent in their trading debut on Monday after a $1.5 billion initial public offering (IPO), casting a shadow over the government's plans to list three other state-run insurers.
The stock fell as much as 5 percent in early trade to hit day's low of Rs 712.50 while its pre-opening price of Rs 730 remained the highest level of the day. The company's market capitalisation stood at Rs 59,744 crore. Khadim India had offered its IPO worth Rs 543 crore between November 2-6.
New India's listing follows that of state-run reinsurer General Insurance Corp of India (GIC Re), whose shares have lost about 11 percent since their October 25 debut following India's biggest IPO of the year so far at $1.7 billion.
Footwear retailer Khadim India shares got listed at Rs 727 on BSE, down 3% over its issue price of Rs 750. "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". It finally ended at Rs 725.05, down 9.36 per cent. The reserved portion for Qualified Institutional Buyers (QIBs) and Retail Individual Investors (RIIs) was oversubscribed by 2.45 times and 2.33 times, respectively. The reinsurance company had fixed the price band at Rs 855-912 for its IPO. GIC closed with a loss of 1.05 per cent at Rs 811.25 on the BSE on Friday.