GIC Re files for IPO, may raise over $1 bn

Will issue 124.7 mn shares comprising 14.22% of capital

State-owned reinsurer General Insurance Corp of India on Monday filed for an initial public offering which bankers have said could raise more than $1 billion, as part of the government's plans to list five non-life insurers in which it holds stakes.

GIC Re's filing comes amid a surge in IPOs in Asia's third-largest economy, which has spurred a slew of insurers to pursue listings, including SBI Life Insurance Co Ltd, a unit of State Bank of India.

The government will be selling about 107.5 million shares in GIC Re's IPO, while the insurer will sell 17.2 million new shares, comprising a total 124.7 million, or 14.22 percent of the company's post-issue share capital, according to the filing.

The proceeds would help the government meet its fiscal deficit target of 3.2 percent of gross domestic product for the year ending in March, which includes selling of stakes in companies.

Axis Capital, Citi, Deutsche Bank, HSBC and Kotak Investment Banking are managing GIC Re's IPO.