New Delhi: The initial public offer (IPO) of state-owned General Insurance Corporation of India (GIC Re) was subscribed 80% on the first day of the bidding on Wednesday.
The GIC Re IPO, through which the reinsurance firm aims to raise Rs11,370 crore, received bids for 99,304,384 shares against the total issue size of 124,700,000 shares. The portion meant for qualified institutional buyers was subscribed 1.55 times, but the non-institutional investor category received just 1% subscription and retail segment received 6% bids, according to NSE data.
GIC Re has fixed the price band at Rs 855-912 per share for its IPO which closes on 13 October. If fully subscribed at the upper end of the price band, the GIC Re IPO will be the largest public offering by an Indian firm after the October 2010 Coal India IPO which had raised Rs15,000 crore.
The GIC Re IPO comprises fresh issue of 17,200,000 shares by the reinsurer and an offer for sale of 107,500,000 shares by the promoter. The company proposes to utilise the proceeds towards augmenting the capital base to support growth of the business and to maintain current solvency levels as also general corporate purposes.
Axis Capital Ltd, Citigroup Inc., Deutsche India, HSBC Securities and Kotak Capital are the investment banks managing the GIC Re IPO. The GIC Re shares are proposed to be listed on NSE and BSE.