General Insurance Corporation of India or in the short form GIC, is the largest reinsurance company of India and they are wholly owned by the Government of India. It was incorporated at Mumbai. The company provides various general insurance products like property, energy, marine, engineering, miscellaneous, aviation-hull/spares-rotor wing, aviation-hull/spares-fixed wing, liability, aviation treaty–hull, spares and liability insurance products. General Insurance IPO is the most sought-after new issue these days. So let me check the GIC IPO review and also point out the date, price, GMP of the issue.
About General Insurance IPO :
- IPO opens on – October 11, 2017
- IPO closes on – October 13, 2017
- Face value – Rs. 5 per equity share
- Issue price – Rs. 855 – Rs. 912 Per Equity Share .
- Issue type – Book Built Issue IPO .
- Minimum lot – 16 shares.
- Minimum order quantity – 16 Shares.
- Issue size – 124,700,000 Equity Shares of Rs 5 aggregating up to Rs 11,372.64 Cr, Fresh Issue of 17,200,000 Equity Shares of Rs 5 aggregating up to Rs [.] Cr and Offer for Sale of 107,500,000 Equity Shares of Rs 5 aggregating up to Rs [.] Cr.
- Listing exchange – BSE, NSE.
- DRHP – To download General Insurance IPO draft prospectus CLICK HERE.
Objectives of the issue :
- Offer for Sale – Corporation will not receive any proceeds from the Offer for Sale.
- Fresh Issue – Corporation proposes to utilize the Net Proceeds from the Fresh Issue towards:
(i) Augmenting the capital base of the Corporation to support the growth of their business and to maintain current solvency levels.
(ii) General corporate purposes.
About The Company-
- This company was incorporated on 22 November 1972 under the Companies Act, 1956 as a private company limited by shares.
- They offer reinsurance solutions for the Afro-Asian region and reinsurance programs in South East Asia, the Middle East and Africa.
- This company develop their overseas business through their home office in Mumbai, branch offices in London, Dubai and Kuala Lumpur, a representative office in Moscow, a subsidiary in the United Kingdom that is a member of Lloyd’s of London and a subsidiary in South Africa.
- This company also offers cargo and offshore energy, motor, life, agriculture, space, health, credit and financial insurance.
- GIC was formed for the purpose of superintending, controlling and carrying on the business of general insurance.
Promoter of the company :
The Promoter of the company is President of India, acting through the Ministry of Finance. It is a compnay that is fully owned by the Indian Government.
General Insurance IPO Or GIC IPO Review: The financial statements disclose that the company has been able to maintain the profit margins at a steady pace in the last five financial years. General Insurance Corporation of India is the bellwether company in the insurance sector and the mutual funds and foreign institutions will likely to keep it in their portfolio. Also historically it has been seen that the share prices of the companies that are getting dis-invested by the Government, does well almost immediately. One recent example is the Cochin Shipyard IPO whose issue price was Rs 424 – Rs 432, while the share is now quoting at 518.85 (so its a gain of 20% already within 2 months).
Keeping in mind the above-mentioned points our GIC IPO Review keeps a POSITIVE view on this General Insurance IPO. Interested investors can apply and hold for a long-term perspective. But as usual before applying, if you are looking for handsome listing gain, don’t forget to check our last day IPO selection method. For more updates on this issue and the grey market premium (GMP) keep a look on our site.
Categories: IPO Review