NSE IPO proceeds to aid Oriental Insurance turn corner in FY27: CMD on stake dilution

Oriental Insurance Company, a public sector general insurer, anticipates returning to profit in FY27, buoyed by a planned stake dilution in the National Stock Exchange (NSE) via its upcoming initial public offering (IPO). Managing Director Sanjay Joshi revealed to PTI that the company is targeting profit this year, and the IPO proceeds will be recorded as profit, enhancing the firm's financials and providing liquidity.

Joshi clarified that the company plans to dilute only a small portion of its holding in NSE, offering approximately 49.57 lakh shares. As of June 30, 2026, Oriental Insurance Company holds a 1.42% stake in the NSE, valued at 3.52 crore shares. Upon listing, the company expects to realize between ₹843 crore and ₹885 crore, depending on the price band of ₹1,700 or ₹1,785 per share.

The IPO, set to open for subscription on September 17, is anticipated to be the second-largest public issue in India, following Hyundai Motor India's ₹27,870-crore offering in 2024. NSE's IPO marks the exchange's market debut, nearly a decade after its initial plans were thwarted by regulatory hurdles. Meanwhile, Oriental Insurance Company marked its 80th foundation day, launching innovative products and initiatives for customers on its anniversary.

The insurer reported a gross premium exceeding ₹20,000 crore for the financial year ended March 2026, reflecting the growing trust of policyholders, intermediaries, and stakeholders in public sector insurance institutions.