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Headline : GIC Re files for IPO, may raise over $1 bn, will issue 124.7 mn shares comprising 14.22% of reinsurer's post issue share capital
 
News Date : Aug 07, 2017
Source : AIP News Bureu
 
Likely to hit the market by mid Oct

Mumbai: 


The national reinsurer, GIC Re filed draft red herring prospectus (DHRP) for public listing before the capital markets regulator Sebi here today.

 


``We have filed DHRP for the company’s forthcoming IPO with Sebi today,” an official of the company told reporters here today.


 

“The issue size of the forthcoming IPO of GIC Re is likely to be at around USD 1 billion,’ he added.


 

The government will be selling 107.5 million shares, whereas GIC Re itself is likely to sell 17.2 million shares through the IPO. Thus a total of 124.7 million shares of the reinsurer would be sold through the share sale offer, constituting 14.22 per cent of the company’s post issue share capital, as per the filing of the company.


 

The face value of company's each share is Rs 5 and both the premium and the total issue size will be decided at a later date with the consultation of the government.


 

The issue is likely to hit the market mid-Oct.


 

“I would like to say that IPO is a welcome step and it shows the commitment of government to reforms. Having said that, we have kick-started the process of IPO and have appointed merchant bankers and legal counsels. Apart from that, I can’t offer any more comments on the issues as we are in process of IPO,” Alice Vaidyan, chairman and managing director, GIC Re had said earlier, adding “We are waiting for clearance from the government as to what will be the initial tranche, but it will be disinvestment of 25 per cent over three years.”


 

Axis Capital, Citi, Deutsche Bank, HSBC and Kotak Investment Banking are managing GIC Re's IPO.




GIC Re's filing comes amid a surge in IPOs in Asia's third-largest economy, which has spurred a slew of insurers to pursue listings, including SBI Life Insurance Co Ltd, a unit of State Bank of India.

 

 

 

 
 

 
 

 
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