NEW DELHI: The 11,370-crore initial public offer (IPO) of General Insurance Corporation of India (GIC Re) got subscribed 89.06 per cent on the second day of the bidding process on Thursday.

India's third biggest IPO after Coal India's Rs 15,200 crore and Reliance Power's Rs 11,700 crore issues, was subscribed 79 per cent on the first day of the bidding process on Wednesday.

The issue received bids for 11,16,79,024 shares as against 12,47,00,000 shares on offer till 7.30 pm on Thursday.

According to media speculations, Life Insurance Corporation of India (LIC) put in a major bid for shares of GIC Re worth Rs 7,000-8,000.

The issue will close on Friday, October 13. The offer would constitute 14.22 per cent of the post-offer paid-up equity share capital.

The company is giving a discount of Rs 45 per share to retail investors and eligible employees. Investors can bid for a minimum of 16 shares and in multiples of 16 thereafter.

Several brokerages gave a 'Subscribe' rating to the issue due to the strong financials of the company. Motilal Oswal in its report said, "We are positive on GIC for long term as both general and reinsurance sector in India provides huge opportunity for growth as it is highly underpenetrated compared to other developing and developed economies."

Meanwhile, Angel Broking in its report said, "The financials of the company may get affected adversely if India witnesses bad monsoon or successive poor monsoon seasons, drought, flooding or other catastrophic events impacting the Indian agriculture industry. Nonetheless, positives such as leadership position, well-managed investment book, robust balance sheet and reasonable valuations provide comfort, hence, we recommend 'Subscribe' on this Issue."