GIC declines on debut

Shares of General Insurance Corporation of India were trading at Rs 806 at 11:13 IST on BSE, a discount of 11.62% over the initial public offer price of Rs 912.

The stock debuted at Rs 850, a discount of 6.80% to the initial public offer (IPO) price. So far the stock hit a high of Rs 866.10 and low of Rs 780.25. On BSE, so far 11.83 lakh shares were traded on the counter.

General Insurance Corporation of India (GIC) priced the IPO at the top end of the Rs 855 to Rs 912 price band. The IPO opened for subscription on 11 October 2017. The issue closed on 13 October 2017. The GIC IPO received bids for 17.18 crore shares and it was subscribed 1.38 times.

The net proceeds from the IPO would be used to augmenting the capital base to support the future growth of business and to maintain the current solvency levels.

On a consolidated basis, the company's net profit rose 11.23% to Rs 3140.62 crore on 55.64% rise in total income to Rs 30946.52 crore in the year ended 31 March 2017 (FY 2017) over FY 2016.

GIC is the largest reinsurer in India by gross premiums accepted in the fiscal ended March 2017 (FY2017), accounting for nearly 60% of the premiums ceded by Indian insurers to reinsurers in the fiscal year. GIC also underwrote business from 161 countries end June 2017 and was ranked 12th largest global reinsurer in the calendar year (CY) 2016 and the third largest Asian reinsurer in CY 2015 by gross premiums accepted.

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