Mumbai : The New India Assurance Co Ltd will see a dilution of 14.56 per cent of its equity shares through an initial public offering, which will be a mix of an offer for sale by the government and fresh issue by the insurer, according to a draft red herring prospectus filed with the Securities and Exchange Board of India.

 Out of the 120 million shares on offer, the government, which is the promoter, will sell 96 million shares via the offer for sale, while the remaining 24 million shares will be part of the fresh issue by the company. The shares carry a face value of 5 rupees each.

Out of the shares on offer, 50 per cent has been set aside for qualified institutional placement, of which about 5 per cent will be set aside for allotment to mutual funds on receipt of valid bids.

At least 15 per cent is allocated for non-institutional bidders and the remaining 35% to retail investors.

   Kotak Mahindra Capital Company Ltd, Axis Capital Ltd, IDFC Bank Ltd, YES Securities Ltd, and Nomura Financial Advisory and Securities (India) Pvt Ltd, are the book running lead managers for the issue.

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