Shares of The New India Assurance Company (NIACL) came under selling pressure on June 23 after witnessing a sharp rally in recent sessions, with investors opting to book profits following the company's substantial gains linked to the National Stock Exchange's IPO plans.

The stock had surged approximately 45 percent over the previous eight trading sessions after NSE filed its draft red herring prospectus for a long-awaited initial public offering. Market participants viewed the development as a significant value-unlocking event for existing shareholders of the exchange, including NIACL.

As part of the proposed Offer for Sale in the IPO, NIACL is expected to divest around 1.05 crore shares held in NSE. The potential monetization of its investment has improved investor sentiment toward the insurer, leading to a sharp rerating of the stock in recent sessions.

However, after the steep rally, profit booking emerged as investors locked in gains. Despite the short-term correction, market participants continue to monitor developments related to the NSE IPO, as the eventual stake sale could generate substantial value for institutional shareholders.

The NSE IPO is one of the most anticipated public offerings in the Indian capital markets, and the participation of existing shareholders through the Offer for Sale has drawn significant attention from investors seeking to assess the potential impact on shareholder value.