Only two out of the five state-owned general insurance companies (GICs) are likely to be listed on the stock exchanges in the current financial year, official sources said.
New India Assurance and GIC Re are gearing up to hit the capital market over the next few weeks. The listing would be done in a staggered manner for the better market response, sources said. These Are The Top 3 Best Places To Work In India
The government had estimated to garner about Rs 11,000 crore by diluting its stake in the insurance firms as part of its disinvestment plans for FY18.
In view of the current market conditions, the government may easily get Rs 15,000 crore by diluting stake in these two companies, sources said adding, it could be upwards of Rs 15,000 crore.
Initial public offer (IPO) is part of the government's plan to list four state-owned non-life insurers and the national reinsurer. These listings would help the government meet its ambitious disinvestment target of Rs 72,500 crore for FY18.
In the case of GIC Re, the government will be selling 10.75 crore shares, whereas GIC Re itself is likely to sell 1.7 crore shares through IPO.
Thus, a total of 12.4 crore shares of the reinsurer would be sold through the share sale offer, constituting 14.22 per cent of the company's post-issue share capital, according to the filing of the company.