General Insurance Corpn of India (GIC Re) has filed the draft red herring prospectus (DRHP) with SEBI for its IPO to raise more than USD 1 billion, as part of the govt’s plans to list 5 non-life insurers in which it holds stakes.
The IPO consists of a fresh issue of 17.2 million shares by the company, apart from a secondary market sale of 107.5 million shares by the govt. The proceeds would facilitate the govt meet its fiscal deficit goal of 3.2% of GDP gross for the year ending in March, which comprise selling of stakes in companies. The IPO will result in 14.22 percent stake dilution on a post-offer basis for the govt, which owns 100 percent at present, in the company.
Axis Capital, Citi Group Global Markets India, HSBC Securities & Capital Markets, Deutsche Equities India, and Kotak Mahindra Capital are financial advisers to manage the IPO.