State-owned reinsurance company General Insurance Corporation of India (GIC) on 7th August 2017, filed DRHP for its initial public offering (IPO).
The IPO will see a total stake dilution of 14.22%. The IPO is likely to raise over Rs10,000 crores
The government plans to sell 1075 lac shares in the IPO, while the company will issue around 172lacs new shares to raise primary capital.
GIC intends to use the proceeds of the IPO for augmenting its capital base to support the growth of its business and to maintain current solvency levels and for general corporate purposes.
Rs10,000-crore GIC IPO will be the second largest public offering in India. In 2010, state-owned company Coal India Ltd had set the record for India’s largest IPO, raising Rs15,200 crores.
The list of companies where the government is looking to pare its stake include railway subsidiaries Rail Vikas Nigam Ltd, Ircon International Ltd, Indian Railway Finance Corp. Ltd, Indian Railway Catering and Tourism Corp. Ltd (IRCTC) and RITES Ltd.
Last month, SBI Life Insurance Co. Ltd filed the IPO Papers. The issue will see State Bank of India and BNP Paribas sell 800lac and 400lac shares, respectively, amounting to a combined 12% stake. The SBI Life IPO is expected to raise around Rs6,000-7,000 crore.
On 14 July, ICICI Lombard General Insurance Co. Ltd, the non-life insurance joint venture of ICICI Bank Ltd and Fairfax Financial Holdings Ltd, filed its IPO Papers. New India Assurance Co. Ltd is also expected to file its IPO documents soon.
GIC has appointed investment banks Citigroup, Axis Capital, Deutsche Bank, HSBC and Kotak Mahindra Capital Co. Ltd to manage the public offering.
Further details will be given in a day or two.