General Insurance Corporation of India set for IPO sale on 11 October 2017

General Insurance Corporation of India (GIC) is going to launch Initial Public Offering (IPO) on 11th October 2017 for INR 11,370. The IPO shall remain open for two days.

Through this IPO sale, GIC is diluting it’s 14.22% equity. This IPO will be launched within price band of INR 855-912 per share. Number of shares to be issued are 12,47,00,000. Let’s see what did the P & L Statement for 2016-17 numbers looked this march:

  • The Overall Operating Profit increased by almost 51%, Fire Insurance – INR 532 Cr, Marine Insurance – INR 384 Cr, Miscellaneous Insurance – INR 1,637 Cr, Life Insurance – (- INR 108 Cr).
  • Life Insurance saw huge dip but compensated by Miscellaneous insurance.
  • Total Income rose from INR 2,970 Crore to INR 3,996 Crore approx. 35% more.
  • Whereas contingent liabilities have also increased from INR 2,764 crores to INR 3,317 which is around an increase of 20% from past fiscal year.
  • The diluted EPS stands at 7.27 per share with Profit after tax being INR 3,127 crores. Additionally the company is offering 5% discount for retail investors. This comes to around INR 45 per share.

Although, we have witnessed less spending by Indian consumers in past few months, but still GIC seems to be attractive in terms of investment watching the trends of SBI Life and ICICI Lombard.