GIC Re IPO raises $1.5bn
The Indian government raised about 98 billion rupees ($1.5 billion) on Oct. 13 by selling some of its shares in the nation’s top reinsurer General Insurance Corp of India (GIC Re), Reuters reported on the same day.
GIC Re, which had a 60 percent share in India’s reinsurance market according to Crisil Research, is expected to benefit from growing premiums in India, which has relatively lower insurance penetration. The company is also expanding internationally.
Crisil estimates reinsurance premiums in India will grow at an average annual rate of 11 to 14 percent over five years to reach 700 billion rupees by March 2022.
The government, which currently fully owns the reinsurer, was selling 107.5 million shares in the initial public offering (IPO), while the company was selling 17.2 million new shares, for a total IPO size of 113.7 billion rupees ($1.75 billion).
The total offer of 124.7 million shares constitutes 14.2 percent of the post-offer paid up share capital.
GIC Re is set to debut in markets on Oct. 25.
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