GIC Re Ends 4.13% Below IPO Price On Stock Market Debut
The 11,370-crore initial public offering was subscribed 1.37 times.
State-owned General Insurance Corporation of India Ltd. ended trade 4.13 percent lower on its stock market debut. The stock opened trading at Rs 850 per share, a 6.8 percent discount to the issue price of Rs 912. It closed at Rs 874.3 apiece.
GIC’s public offer of Rs 11,370-crore was subscribed 1.37 times. It was the third largest IPO ever in India. The portion reserved for qualified institutional buyers was subscribed 2.25 times the number of shares on offer while the retail investor portion was subscribed 0.60 times as of 7 pm, according to data provided by Axis Capital.
Shares reserved for non-institutional investors saw muted demand.
GIC Re is the largest reinsurance company in India in terms of gross premiums received in fiscal year 2017 and accounted for around 60 percent of the premiums ceded by Indian insurers to reinsurers during the fiscal year.
The company has planned to use the share sale proceeds to augment capital base and for other general corporate purposes.
