Life Insurance Corporation of India (LIC) has bid for shares of General Insurance Corporation of India (GIC Re) worth around Rs 7,000-8,000 crore in the latter’s ongoing initial public offer, two people in the know told Mint.
The newspaper could not independently ascertain the exact amount bid for, it said.
At the upper end of the price band of Rs 855-912, GIC Re is looking to raise Rs 11,372 crore through its IPO. Going by this, the company has been valued at around Rs 80,000 crore.
“LIC has made a substantial bid in the institutional portion of the book as a result of which the institutional portion is already oversubscribed and the overall IPO, too, is substantially subscribed on the first day itself,” said one of the two persons mentioned above.
LIC Chairman VK Sharma reportedly confirmed that LIC has bid for shares in the GIC Re IPO but declined to comment on the amount bid for. A separate email sent by Mint to LIC went unanswered.
GIC’s IPO is a part of the Union government’s disinvestment plan, under which the Department of Investment and Public Asset Management (DIPAM) plans to sell government’s stakes in several central public sector enterprises through various routes such as IPOs and offers for sale.
Through the OFS component of the issue, the government plans to sell 107.5 million shares of GIC, which at the upper end of the price band will fetch around Rs 9,804 crore.