General Insurance Corporation of India’s (GIC Re) Rs 11,400-crore IPO, country’s third-largest, was subscribed 90 per cent a day before its close. The institutional investor portion of the IPO was subscribed 1.7 times, retail portion was subscribed 16 per cent and wealthy investor portion less than two per cent, data provided by stock exchanges showed. Market sources said state-owned Life Insurance Corporation (LIC) has put in a bid for Rs 8,000 crore worth of shares.
So far the IPO has seen barely any bids for overseas investors.State-owned GIC Re is India’s largest reinsurance company with 60 per cent market share. The price brand for the GIC Re IPO is Rs 855 to Rs 912 per share. Retail investors are being offered a discount of Rs 45 per share. In the IPO, the government is offloading 107.5 million shares to raise about Rs 9,800 crore, while GIC Re is issuing fresh equity shares Rs 1,580 crore. The IPO could lead to dilution of about 14.2 per cent stake.