 "GIC IPO subscribed 80% on Day 1")
General Insurance Corporation of India’s (GIC Re’s) Rs 11,400-crore initial public offering (IPO), the country’s third-largest, was subscribed 80 per cent on Wednesday, the first day of the issue.
The institutional investor portion was subscribed 1.55 times, while that of retail investors subscribed 11 per cent, data provided by the bourses showed.
State-owned GIC Re is India’s largest reinsurance company with 60 per cent market share.
The price brand for the IPO is Rs 855-912 per share.
Retail investors are being offered a discount of Rs 45 per share. At the upper end of the price band, GIC Re is valued at 25 times of its 2016-17 earnings and four times its 2016-17 book value.
The government is offloading 107.5 million shares through the IPO to raise Rs 9,800 crore. GIC Re is issuing fresh equity shares worth Rs 1,580 crore.
The IPO could lead to a dilution of about 14.2 per cent stake.
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