GIC targets 3rd-biggest IPO in India with RM7b

MUMBAI • General Insurance Corp (GIC), India’s largest reinsurer, and its owner will seek as much as 113.7 billion rupees (RM6.82 billion) after setting terms for the third-biggest initial public offering (IPO) on record in the South Asian nation.

GIC will offer 17.2 million new shares at 855 rupees to 912 rupees apiece, according to advertisement published yesterday in the Financial Express newspaper.

Its only shareholder, the Indian government, will sell as many as 107.5 million shares in the IPO.

The offering will open on Oct 11 and close on Oct 13.

Indian IPOs have already raised 389.3 billion rupees this year, surpassing the previous annual record set in 2010, according to data compiled by Bloomberg.

The share sale from GIC will be the biggest since Coal India Ltd’s 2010 offering, the data show.

GIC will offer a discount of 45 rupees per share to staff and individual investors, according to yesterday’s advertisement.

The reinsurer is following SBI Life Insurance Co — the insurance unit of India’s largest bank — which raised 83.86 billion rupees in its IPO last month. — Bloomberg