GIC Re IPO subscribed 81% so far on second day

General Insurance Corp. of India Ltd’s (GIC Re) initial public offer (IPO) was subscribed 81% on the second day of the bidding on Thursday.

As of 12pm, the IPO received bids for 101,267,776 shares against the total issue size of 124,700,000 shares, according to data available with stock exchanges.

The GIC Re IPO, which aims to raise Rs11,370 crore, closes on 13 October. GIC Re has fixed the price band at Rs855-912 per share. If fully subscribed at the upper end of the price band, the GIC Re IPO will be the largest public offering by an Indian firm after the October 2010 Coal India IPO which had raised Rs15,000 crore.

The GIC Re IPO comprises fresh issue of 17,200,000 shares by the reinsurer and an offer for sale of 107,500,000 shares by the promoter. The company proposes to utilise the proceeds towards augmenting the capital base to support growth of the business and to maintain current solvency levels as also general corporate purposes.

Axis Capital Ltd, Citigroup Inc., Deutsche India, HSBC Securities and Kotak Capital are the investment banks managing the GIC Re IPO. The GIC Re shares are proposed to be listed on NSE and BSE.