IPO: Govt May List Only 2 Insurers On Exchanges This Year

By Nithya Nair
Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    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.

    IPO: Govt May List Only 2 Insurers On Exchanges This Year

    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.

    Goodreturns.in 

    Read more about: ipo insurer
    Story first published: Tuesday, October 3, 2017, 13:37 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more