Oriental Insurance Planning IPO

Kolkata: Oriental Insurance Company Ltd, one of the four public sector non-life insurers, will like to unlock part of its value, courtesy an initial public offering. The company, which has grown substantially in the past few years and expects to move ahead rapidly in the current de-tariffed regime, has done a set of back-of-the-envelope calculations, which points to a decent per-share value, assuming a face value of Rs 10 per share. Oriental Insurance, indicated is aware of the regulatory issues before it, ones which have to be addressed before any dilution of government's holding could be addressed. The company, which has aimed a 15-per cent growth in premium this year, is looking at more products in the coming months especially on the fire insurance front. The company has a healthy mix of businesses, a significant part of which is on account of motor insurance. It is targeting a number of large institutional clients at this juncture. OIC registered a gross direct premium of Rs 3,609 crore in 2005-06 compared to Rs 3,090 crore recorded in the previous year. Its net profit stood at Rs 283 crore. The company's paid-up capital is Rs 100 crore.