The issue comprises a 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 initial public offer (IPO) of state-owned General Insurance Corporation of India was subscribed 90 percent on the second day of the bidding today.
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 percent and retail investors' quota by 16 percent.
Till yesterday, the IPO was subscribed 80 percent. The reinsurance company has fixed the price band at Rs 855-912 for its IPO which closes tomorrow. 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 a 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 the growth of business and maintain current solvency levels as also general corporate purposes.