The initial public offer (IPO) of General Insurance Corporation of India (GIC Re) witnessed a strong response as the issue got subscribed 72 per cent so far on the first day of the three-day bidding today.

The issue received bids for 8,97,26,432 shares against the total issue size of 12,47,00,000 shares, data available with the NSE till 3.15 pm showed.

GIC Re's issue is a mega ₹11,370-crore IPO — the third largest after Coal India (₹15,200 crore in 2010) and Reliance Power (₹11,600 crore in 2008). The PSU re-insurer will sell 12.47 crore shares in the IPO at a price band of ₹855-912. The IPO will close on October 13.

The issue comprises fresh issue of 1,72,00,000 shares by the corporation and an offer for sale of 10,75,00,000 shares by the promoter.

The company proposes to utilise the net proceeds of the fresh issue towards augmenting the capital base to support business growth and to maintain current solvency levels as also for general corporate purposes.

Axis Capital, Citigroup, Deutsche India, HSBC Securities and Kotak Capital are the book running lead managers to the offer.The shares of General Insurance Corporation of India are proposed to be listed on the National Stock Exchange of India and the BSE.

General Insurance Corporation of India is the latest to join the IPO bandwagon. GIC is the largest reinsurance company in India in terms of gross premiums in FY-17, accounting for about 60 per cent of the premiums ceded by Indian insurers to reinsurers during the year.

GIC provides reinsurance across segments such as fire (property), marine, motor, agriculture, aviation, and health, among others.

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