Home >market >stock-market-news >GIC Re IPO subscribed 90% on second day
The GIC Re IPO, which aims to raise Rs11,370 crore by issuing shares in a price band of Rs855-912, closes on 13 October. (The GIC Re IPO, which aims to raise Rs11,370 crore by issuing shares in a price band of Rs855-912, closes on 13 October.)
The GIC Re IPO, which aims to raise Rs11,370 crore by issuing shares in a price band of Rs855-912, closes on 13 October. (The GIC Re IPO, which aims to raise Rs11,370 crore by issuing shares in a price band of Rs855-912, closes on 13 October.)

GIC Re IPO subscribed 90% on second day

The portion of shares reserved for institutional investors in the GIC Re IPO saw a subscription of 1.67 times, while that for retail and non-institutional investors were subscribed 16% and 2%, respectively

Mumbai: The initial public offering of state-owned General Insurance Corp. of India Ltd (GIC Re) was subscribed 90% on Thursday, the second day of the IPO.

As of 5pm, the portion of shares reserved for institutional investors in the GIC Re IPO saw a subscription of 1.67 times. The portion of shares reserved for retail investors and non-institutional investors witnessed weak response. They were subscribed 16% and 2%, respectively.

On Thursday, Mint reported that insurance giant Life Insurance Corp. of India (LIC) has put in a major bid for shares in GIC Re IPO, citing two people aware of the development.

LIC has bid for shares worth Rs7,000-8,000 crore, Mint reported, leading to an oversubscription in the institutional category on the first day of the offering.

GIC Re’s Rs11,372 crore IPO is the largest in India in seven years. It is the third largest IPO till date after state-owned Coal India Ltd’s Rs15,200 crore initial share sale in 2010, which remains the largest public offering till date by an Indian entity and Reliance Power’s Rs11,700 crore initial share sale in 2008.

The reinsurer has set a price band of Rs855-912 per share for the IPO, which values it at Rs75,000-80,000 crore. The offer will close on 13 October. The GIC Re IPO will see a total stake dilution of 14.22%.

The company offers reinsurance services in key businesses such as fire (property), marine, motor, engineering, agriculture, aviation, health, liability, credit and financial liability, and life insurance.

The GIC Re IPO includes a fresh issue of Rs1,568.6 crore.

Proceeds from the fresh issue will be used for augmenting the capital base of the reinsurer to support the growth of its business, to maintain current solvency levels and for general corporate purposes.

The government, in an offer for sale, plans to sell a total of 107.5 million shares, which at the upper end of the price band will fetch Rs9,804 crore.

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