General Insurance IPO subscribed 90% on Day 2

New Delhi: The initial public offer (IPO) of state-owned General Insurance Corporation of India was subscribed 90 per cent on the second day of the bidding on Thursday.

GIC Re's Rs 11,370-crore IPO received bids for 11,16,79,024 shares against total issue size of 12,47,00,000 shares, data available with the NSE showed.

The portion meant for qualified institutional buyers (QIBs) was oversubscribed 1.68 times, that for non- institutional investors by 2 per cent and retail investors' quota by 16 per cent.

Till Wednesday, the IPO was subscribed 80 per cent.

The reinsurance company has fixed the price band at Rs 855-912 for its IPO which closes on Friday.

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.