GIC Re IPO subscribed 1.37 times, LIC accounts for over 50% of the bids

The centre is looking to launch the IPO of New India Assurance and also plans to sell its holding in 22 companies through the Bharat-22 ETF

The mega initial public offering of equity (IPO) at state-owned General Insurance Corporation of India (GIC Re), the country’s largest reinsurance company, garnered only 1.35 times the subscription.

The Rs 11,300-crore IPO, largest in seven years, saw bids worth Rs 15,350 crore, of which a little over half came from government-owned Life Insurance Corporation of India (LIC). The retail (from non-wealthy individuals) portion of the IPO was subscribed 55 per cent; the high net worth individual (HNI) portion was subscribed 22 per cent.The qualified institutional buyer segment (QIB) was subscribed 2.25 times.

Investment bankers say the poor response isn’t an encouraging sign