The initial public offer (IPO) of state-owned General Insurance Corporation of India was subscribed 80 percent on the first day of the bidding today. GIC Re’s Rs 11,370-crore IPO received bids for 9,93,04,384 shares against the total issue size of 12,47,00,000 shares.
The portion meant for QIB was subscribed 1.55 times, but non-institutional investor category received just 1 percent subscription and retail segment received 6 per cent bids, according to the NSE data.
The reinsurance company has fixed the price band at Rs 855-912 for its IPO which closes on October 13.
If fully subscribed at the upper end of the price band, this will be the largest public float by a domestic company after the October 2010 offer by Coal India which had raised Rs 15,000 crore.
The issue comprises fresh issue of 1,72,00,000 shares by the Corporation and an offer for sale of 10,75,00,000 shares by the promoter. The company proposes to utilise the proceeds towards augmenting the capital base to support growth of the business and to maintain current solvency levels as also general corporate purposes.
Axis Capital, Citigroup, Deutsche India, HSBC Securities and Kotak Capital are the book running lead managers to the offer. The shares of General Insurance Corporation of India are proposed to be listed on the National Stock Exchange of India and the BSE.