State-run reinsurer General Insurance Corp of India (GIC Re) will hit the capital market with a mega initial public offering (IPO) to raise about Rs 11,370 crore ($1.7 billion) on October 11.

This would be the country’s second largest IPO ever after Coal India’s Rs 15,200 crore issue in 2008.

GIC Re fixed a price range of Rs 855-912 a share for its IPO that will run from Wednesday to Friday next week, or Oct 11-13. At the upper end of the price range, the IPO would raise Rs 11,370 crore.

In the GIC Re IPO, the Indian government, which fully owns the reinsurer, will sell 107.5 million shares, while the company will raise funds by selling 17.2 million new shares.

The total offer of 124.7 million shares constitutes 14.2 per cent of the post-offer paid up share capital.

Citi, Axis Capital, Deutsche Bank, HSBC and Kotak are the banks managing the IPO and the registrar to the offer is Karvy Computershare.

To keep the fiscal deficit target of 3.2 per cent of GDP for the current fiscal, the government aims to raise Rs 72,5000 crore by divesting some of its stakes in state-run companies and private firms in which it holds minority stakes.

In the IPO, the retail and employee portion will get a discount of Rs 45 on the offer price.

The company proposes to use the net proceeds of the fresh issue to augmenting the capital base to support business growth and maintain the current solvency levels.

The shares will be listed on the National Stock Exchange of India and BSE.

With almost $6 billion worth of IPO sales in the first three quarters of 2017, India is set for a record year in initial share sale, aided by strong stock markets and higher fund flows into equity from institutions and retail investors.