Shares of General Insurance Corporation (GIC Re) surged over 8 percent following a key change in the management made Suresh Savaliya the company secretary, compliance officer and key managerial personnel, succeeding Satheesh Kumar, deputy general manager, effective from December 11.
At 9:34am, the GIC Re shares were trading 8.13 percent higher at Rs 329.75 on the National Stock Exchange (NSE). So far this year, the stock has rallied over 75 percent, outperforming the benchmark Nifty 50 which has zoomed over 15 percent in this period.
In the last one month, the GIC Re stock has seen a stellar rally of over 47 percent, which has pushed its market capitalisation to above Rs 57,700 crore. The surge can be attributed to the reinsurer's impressive financial performance, credit rating upgrade, and strong outlook.
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The company management recently conducted non-deal road shows following which the investors have started understanding the company’s operations and businesses.
With a strong FY23 financial performance, GIC Re has received a credit rating upgrade which is helping the company bag large international orders. All these factors have led to a spike in the share price, GIC Re CMD N Ramaswamy said in an interview with CNBC-TV18 recently. Another potential factor behind the sharp rally could be GIC Re's low public float.
The government holds an 86 percent stake in the company and LIC 9 percent, leaving a 5 percent public float. Often, stocks with such low public float show large moves on low volumes.
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Despite the stellar run over the last few weeks, the GIC Re stock is still away from its IPO price of Rs 456 a share (1:1 bonus adjusted).
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