Govt looks to raise up to Rs 11,370 crore from state-run reinsurer GIC Re's IPO
State-run reinsurer General Insurance Corp of India`s (GIC Re) initial public offering of shares next week seeks to raise as much 113.7 billion rupees ($1.7 billion) in what will be India`s second-biggest IPO.
GIC Re set a price range of 855-912 rupees a share for its IPO that will run from Oct. 11-13, according to a public notice on Wednesday. At the upper end of the price range, the IPO would raise 113.7 billion rupees ($1.7 billion).
With almost $6 billion worth of IPO sales in the first three quarters of 2017, India is set for a record year aided by strong stock markets and higher fund flows into equity from institutions as well as retail investors. High valuations of share sales have however concerned some investors.
In the GIC Re IPO, the Indian government, which fully owns the reinsurer, will sell 107.5 million shares, while the company will raise funds by selling 17.2 million new shares. The total offer of 124.7 million shares constitutes 14.2 percent of the post-offer paid up share capital.
Citi, Axis Capital, Deutsche Bank, HSBC and Kotak are the banks managing the GIC Re IPO, which is the biggest since Coal India`s 2010 share sale that raised 152 billion rupees.
To help bring the fiscal deficit meet a target of 3.2 percent of gross domestic product during the year to March 2018, the government aims to raise 725 billion rupees by divesting some of its stakes in state-run companies and private firms in which it holds minority stakes.
($1 = 65.4800 Indian rupees)
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
Top 7 Large and Mid Cap Mutual Funds with Best SIP Returns in 5 Years: No. 1 fund has turned Rs 15,000 monthly SIP investment into Rs 20,54,384; know about others
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
08:42 AM IST