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GIC files initial papers for IPO, govt to dilute 14.22% stake

Press Trust of India  |  New Delhi 

State-owned General Company of has filed draft red herring prospectus (DRHP) for initial public offer for sale of 12.4 crore as part of the government's strategy to list all state-owned insurers.

Following the IPO, the central government's stake in the wholly owned reinsurance firm will come down by 14.22 per cent, according to the DRHP.

The company proposed IPO is of 12.4 crore with a face value Rs 5 each. Of this, 1.7 crore will be fresh while 10.7 crore will be offered for sale by the

The company intends to utilise net proceeds from the fresh issue of shares to augment capital base, support future growth and maintain current solvency levels.

GIC Re provides reinsurance support to 54 direct general and life companies, both public and private, in the Indian market.

It also has a global presence providing reinsurance services to insurance companies in the region, African countries and the Middle-East, besides having branch offices in London, Dubai and Malaysia and a representative office in Moscow.

In mid-January, the Cabinet had approved listing of general insurance companies - New Assurance Company, United Insurance, Oriental Insurance Company, National Insurance Company and General Insurance Corporation of India (GIC Re). It had approved dilution of up to 25 per cent stake in each of the five companies.

The has set a steep disinvestment target of Rs 72,500 crore for the next fiscal, of which Rs 11,000 crore is expected to come from listing of PSU general insurers.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, August 07 2017. 20:57 IST