Mumbai: The initial public offering (IPO) of state-owned General Insurance Corp. of India Ltd (GIC Re) was subscribed 1.37 times on Friday, the last day of the share sale.
As of 7pm, the portion of shares reserved for institutional investors in the GIC Re IPO saw a subscription of 2.25 times. The portion of shares reserved for retail investors and non-institutional investors were subscribed 60% and 22%, respectively.
On the institutional side, the IPO saw Life Insurance Corp. of India (LIC) put in a substantial bid of around Rs7,000-8,000 crore, Mint reported on Thursday.
GIC Re’s Rs11,372 crore IPO is the largest 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 and Reliance Power’s Rs11,700 crore initial share sale in 2008.
The reinsurer had set a band of Rs855-912 per share for the IPO, which values it at Rs75,000-80,000 crore. The GIC Re IPO will see a total stake dilution of 14.22%.
The firm 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 shares worth Rs1,568.6 crore. Proceeds from the fresh issue will be used for augmenting the capital base of the firm to support the growth of its business and to maintain current solvency levels.