GIC1

Business description from prospectus – General Insurance Corporation (GIC) is the largest reinsurance company in India in terms of gross premiums accepted in Fiscal 2017, and accounted for approximately 60% of the premiums ceded by Indian insurers to reinsurers during Fiscal 2017, according to CRISIL Research. The company is also an international reinsurer that underwrote business from 162 countries as at 31 March 2017. According to CRISIL Research, it ranked as the 12th largest global reinsurer in 2016 and the 3rd largest Asian reinsurer in 2015, in terms of gross premiums accepted. GIC provides reinsurance across many key business lines including fire (property), marine, motor, engineering, agriculture, aviation/space, health, liability, credit and financial and life insurance.

GIC has diversified its business geographically to grow the underwriting business and profitability as well as to maintain a balanced portfolio of risks. Its gross premiums on a restated consolidated basis from the international business in Fiscal 2017, Fiscal 2016 and Fiscal 2015 were INR103,004.52 million, INR83,396.92 million and INR66,094.53 million, respectively, and its gross premiums have grown at a CAGR of 24.84% from Fiscal 2015 to Fiscal 2017. In Fiscal 2017, Fiscal 2016 and Fiscal 2015, its gross premiums for risks outside of India were 30.53%, 45.00% and 43.28%, respectively, of its total gross premiums. The company develops its overseas business through home office in Mumbai, branch offices in London, Dubai and Kuala Lumpur, a representative office in Moscow, a subsidiary in the United Kingdom that is a member of Lloyd’s of London and a subsidiary in South Africa.

Competitive Strengths

  1. Leader in Indian reinsurance industry with 44 years of experience
  2. International presence
  3. Diversified product portfolio and revenue streams
  4. Strong financial track record and a strong balance sheet
  5. Experienced management team

Company Promoters:

The Promoter of the company is President of India, acting through the Ministry of Finance.

Company Financials:

Summary of financial Information (Consolidated)

GIC

Objects of the Issue:

The Offer comprises of the Fresh Issue and the Offer for Sale.

  1. Offer for Sale

Corporation will not receive any proceeds from the Offer for Sale.

  1. Fresh Issue

Corporation proposes to utilize the Net Proceeds from the Fresh Issue towards:
(i) Augmenting the capital base of the Corporation to support the growth of their business and to maintain current solvency levels; and
(ii) General corporate purposes.

Issue Detail:

»»  Issue OpenOct 11, 2017 – Oct 13, 2017
»»  Issue Type: Book Built Issue IPO
»»  Issue Size: 124,700,000 Equity Shares of Rs 5 aggregating up to Rs 11,372.64 Cr
›  Fresh Issue of 17,200,000 Equity Shares of Rs 5 aggregating up to Rs [.] Cr
›  Offer for Sale of 107,500,000 Equity Shares of Rs 5 aggregating up to Rs [.] Cr
»»  Face Value: Rs 5 Per Equity Share
»»  Issue Price: Rs 855 – Rs 912 Per Equity Share
»»  Market Lot: 16 Shares
»»  Minimum Order Quantity: 16 Shares
»»  Listing At: BSE, NSE

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