New India Assurance Company shares have been on a roll lately, defying weak market sentiment due to geopolitical tensions and oil price volatility. New India Assurance Company’s share price jumped 20% to hit its 52-week high as well as the upper circuit of ₹234.60 in Friday’s session. At this level, the stock was up nearly 101% from its 52-week low of ₹116.95, which it hit on March 30 this year. In other words, the stock more than doubled investors’ money in five months and five days.
However, the stock ended 18.16% higher at ₹231 on the BSE on 4 September.
The stock has jumped 68% over the last six months, while year-to-date, it has gained 48.51%.
Why is New India Assurance Company share price rising?
The recent rise in the stock price could be largely attributed to the bullish sentiment around the NSE IPO. The New India Assurance Company holds 1.42% of the pre-offer equity shares of NSE.
NSE IPO is an offer for sale (OFS) in which The New India Assurance Company is one of the corporate selling shareholders.
New India Assurance is selling up to 1.05 crore shares of NSE of face value of ₹1 each. At the weighted average cost of acquisition of 0.32 per share, the cost of shares comes to ₹33.6 lakh. New India Assurance will make a hefty profit in the OFS if the stock lists at a premium.
As Mint earlier, shareholders selling equity in the NSE IPO are set to bag up to a thousand-fold returns on their average investment costs once the exchange gets listed.
Mint used the approximate upper and lower ends of grey-market quotes as references, which price shares at ₹1,800 on the lower end and ₹2,040 on the upper end.
Meanwhile, the NSE IPO price band is yet to be announced. According to media reports, NSE may announce the IPO price band on 11 September 11, and the stock may be listed on 25 September.
New India Assurance Company’s financial performance
The company’s profit after tax (PAT) in FY26 grew 40% to ₹1,383.59 crore from ₹988.07 crore.
Net premium increased by 8.30% year-on-year to ₹39,330.61 crore in FY26 from ₹36,315.15 crore in FY25. Earned premium rose by 8.75% YoY to ₹38,462.24 crore.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.