General Insurance Corporation IPOGeneral Insurance Corporation IPO (GIC IPO)

General Insurance Corporation of India is coming up with its IPO (Initial Public Offering) of 11,500 Crore on October 11. This is the third largest IPO in Indian history. Earlier Coal India has come up with IPO of 15, 200 crore in October 2010 and Reliance Power with IPO of 11,700 crore in the year 2008. In the month of August GIC filed offer document with Securities Exchange Board of India. According to officials, GIC IPO consists of fresh issue of 17.2 million equity shares plus an offer of 107.5 million shares of the government.

General Insurance Corporation IPO is also the part of Indian government’s 2017-18 disinvestment programme. The target for this fiscal was to raise 72,500 crore. Centre is already successful in raising 15,000 crore. It has big hope from this IPO. There is also news that four other government owned insurance company namely National India Insurance, National Insurance, Oriental Insurance and  United India Insurance will also join the disinvestment procedure next.

General Insurance corporation is the largest government owned reinsurance company of India in terms of premiums. It is incorporated in the year 1972. The company offers bundles of general insurance products including property, marine, engineering, aviation and other miscellaneous insurance products. Apart from these, GIC also offers insurance products which provide you cover in agricultural activities, health insurance, motor insurance, credit and financials. To successfully handle such operations, business needs finance, IPO being one of the methods of raising finance.

Company Business

GIC Re offers reinsurance facilities in the Afro- Asian region. It also handles various reinsurance programmes in South East Asia, Middle East Asia and Africa. The headquarters are in Mumbai. However, the company has various branches from where it controls its business. The branches of General Insurance Corporation of India are spread over London, Dubai and Kuala Lumpur. In addition to this, it has a subsidiary in UK and South Africa plus a representative office in Moscow.

Company Promoter

The promoter of the company is President of India. However, Ministry of Finance handles the company in his behalf.

GIC – Company Financials

These are the summary of General Insurance Corporation’s financial information of the last 5 years in consolidated form:

Summary of financial Information (Consolidated)
Particulars For the year/period ended (in Rs. million)
31-Mar-17 31-Mar-16 31-Mar-15 31-Mar-14 31-Mar-13
Total Assets 485,269.54 406,375.76 430,986.15 332,005.86 281,390.59
Total Revenue 36,441.79 32,340.78 30,995.34 26,985.09 25,111.20
Profit After Tax (PAT) 28,578.52 26,549.18 28,026.85 23,218.42 22,888.64

General Insurance Corporation Issue Details

  • IPO Open Date – 11 Oct 2017 – 13 Oct 2017
  • Issue Size – 124,700,000 Equity Shares of Rs. 5 amounting to Rs 11,372.64 Cr
    Fresh Issue of 17.2 million equity shares of Rs. 5 each
    Offer for sale of Rs 107.5 million equity shares of Rs. 5 each
  • Face Value – Rs 5 per share
  • Issue Price – Rs 855 – Rs 912 per equity share
  • Lot size – 16 shares
  • Minimum order quantity – 16 shares
  • Listing Stock exchanges – NSE and BSE

General Insurance Corporation IPO Prospectus

General Insurance Corporation IPO Lead Manager(s)

1. Axis Capital Limited
2. Citigroup Global Markets India Private Limited
3. Deutsche Equities India Private Limited
4. HSBC Securities & Capital Markets Pvt Ltd
5. Kotak Mahindra Capital Company Limited