General Insurance Corp files for IPO, seen raising over $1 billion
Bengaluru/Mumbai: State-owned reinsurer General Insurance Corp. of India on Monday filed for an initial public offering (IPO) which bankers have said could raise more than $1 billion, as part of the government’s plans to list five non-life insurers in which it holds stakes.
GIC Re’s filing comes amid a surge in IPOs in Asia’s third-largest economy, which has spurred a slew of insurers to pursue listings, including SBI Life Insurance Co. Ltd, a unit of State Bank of India (SBI).
The government will be selling about 107.5 million shares in GIC Re’s IPO, while the insurer will sell 17.2 million new shares, comprising a total 124.7 million, or 14.22% of the company’s post-issue share capital, according to the filing.
The proceeds would help the government meet its fiscal deficit target of 3.2% of gross domestic product (GDP) for the year ending in March, which includes selling of stakes in companies.
Axis Capital, Citi, Deutsche Bank, HSBC and Kotak Investment Banking are managing GIC Re’s IPO. Reuters