New Delhi: General Insurance Corp. of India Ltd’s (GIC Re) Rs11,372 crore initial public offer (IPO) was subscribed 79% on the first day of shares sale on Wednesday.
As of 5pm, the IPO received bids for 99,036,112 shares against the total issue size of 124,700,000 shares, according to data available with NSE. The offer closes on 13 October.
Analysts are upbeat about India’s second-largest IPO. Brokerages said improving operating metrics, continued traction from agriculture business and decent valuations are positives.
The GIC Re IPO will see the state-owned insurance firm issue shares in a price band of Rs855-912 apiece, valuing it at Rs75,000-80,000 crore.
GIC Re is the largest reinsurance company in India in terms of gross premiums received in fiscal year 2017 and accounted for around 60% of the premiums ceded by Indian insurers to reinsurers during the fiscal year.