Receives bids for 9.90 crore shares
General Insurance Corporation (GIC) received bids for 9.90 crore shares on the first day of the bidding for the initial public offer (IPO) today, 11 October 2017, data on NSE showed as at 17:00 IST. The IPO was subscribed 0.79 times. The price band of the IPO has been fixed at Rs 855 to Rs 912 per share. The IPO opened for subscription today, 11 October 2017. The issue closes on 13 October 2017.
The IPO is to collect around Rs 11372.64 crore at the upper band of the issue price of Rs 912 per share (face value Rs 5 per share) and Rs 10661.85 crore at the lower price band of Rs 855 per equity share. The issue consists of a fresh issue of 1.75-crore shares totaling up to Rs 1568.6 crore at the upper price band and offer for sale of 10.75-crore shares totaling up to Rs 9804 crore at the upper price band of Rs 912 per share. The offer for sale comprises 10.75 crore shares by the Union government. There is discount of Rs 45 per share on the offer price for retail individual bidders.
The net proceeds from the fresh issue will 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.
General Insurance Corporation (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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