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.
Promoters of GIC – The President of India
| GIC IPO details | |
| Subscription Dates | 11 – 13 October 2017 |
| Price Band | INR855 – 912 per share (Discount of INR45 per share for retail investors and employees) |
| Fresh issue | 17,200,000 shares (INR1,568.64 crore) |
| Offer For Sale | 107,500,000 shares (INR9,804 crore) |
| Total IPO size | 124,700,000 shares (INR11,372.64 crore) |
| Minimum bid (lot size) | 16 shares |
| Face Value | INR5 per share |
| Retail Allocation | 35% |
| Listing On | NSE, BSE |
| GIC’s financial performance (in INR crore) | ||||||
| FY2015 | FY2016 | FY2017 | ||||
| Total revenue | 16,494.1 | 18,204.5 | 29,291.5 | |||
| Total expenses | 14,932.9 | 16,614.3 | 27,147.8 | |||
| Profit after tax | 2,891.0 | 2,823.4 | 3,140.6 | |||
General Insurance Corporation of India
‘Suraksha’ 170, J Tata Road
Churchgate
Mumbai 400 020
Phone: +91 22 2286 7000
Fax: +91 22 2288 4010
Email: [email protected]
Website: www.gicofindia.com
Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32,
Gachibowli, Nanakramguda,
Hyderabad – 500 032, Telangana
Phone: +91 40 6716 2222
Fax: +91 40 2343 1551
Email: [email protected]
Website: www.karvycomputershare.com
Earnings Per Share (EPS): INR36.52
Price/Earnings (P/E) ratio: 23.41 – 24.97
Return on Net Worth (RONW): 16.09%
Net Asset Value (NAV): INR226.90 per share
GIC IPO Subscription Details
| Category | Shares offered | Subscription (no. of times, at 6:30 PM) | ||
| Day 1 | Day 2 | Day 3 | ||
| QIB | 62,277,900 | 1.55 | 1.67 | 2.24 |
| NII | 18,683,371 | 0.00 | 0.01 | 0.21 |
| Retail | 43,594,532 | 0.05 | 0.15 | 0.59 |
| Employees | 144,197 | 0.12 | 0.41 | 0.93 |
| Total | 124,700,000 | 0.79 | 0.89 | 1.36 |
GIC IPO allotment status is now available on Karvy Computershare’s website. Click on this link to get allotment status. You can also check allotment status using application number on this link.
IPO Opening Date: 11 October 2017
IPO Closing Date: 13 October 2017
Finalisation of Basis of Allotment: 18 October 2017
Initiation of refunds: 23 October 2017
Transfer of shares to demat accounts: 24 October 2017
Listing Date: 25 October 2017
Listing Price on NSE: INR850 per share (down 2% from IPO price for retail investors)
Closing Price on NSE: INR874.3 per share (up 0.8% from IPO price for retail investors)
GIC is a trusted company. It is showing fair revenue growth rate. PE is 25 and Price to NAV ratio is 4. It has a long history. Unlike other Insurance company’s issues where the PE investor were looking to be paid well for their investment, this issue has fair amount of fresh issue. It is a good bet for long term. Hope retail investor will get their discount which will make the deal even more sweeter.
I want to invest in gic ipo should i
Good ipo. Invest this ipo…….
Great Things:
PE = 25
Book Value = 225 (p/b expected 4)
RETAIL DISCOUNT = 5%
ALLOTMENT POSSIBILITY = MINIMUM LOT TO EACH APPLICANT IS SURE
EVEN HIGHER ALLOTMENT POSSIBLE TO APPLICANTS MAKING MORE THAN 1 LOT IN RETAIL QUOTA.
VERDICT: APPLY WITH FULL FORCE
This is a wonderful company, must apply type and the IPO is also big so everyone will get shares.
Sabka Saath, Sabka Vikas! Allotment to all (hopefully), long term value creation (certainly)!
People applying for listing gains will be biggest losers. Bear in mind.
Long term investors must apply with full force.
JSK..
If you apply 208 shares at cut off you will get discount of rs. 9360 on an investment of rs. 180336. Great returns . Further if the shares list even at a premium of 5%, then returns will be more than 18000. apply for a Deewali Bonanza.
More chances of getting listed at-ve due to this retail discount. Don’t apply, buy after listing, you will get much cheaper
Hi
Good analysis
This ipo is so good. I am apply this ipo on first day. Sure listing gain & longterm holding much better.
Who is retail investor?
Will i get 45 rs discount per share?
Yes……
Seems like a Good IPO the numbers add up to its performance, I am applying
How to apply? Can you give me link where i can apply
Invest this ipo. Listing gain 10% to 15%.
Some websites are showing negative Gmp. why so?
Misleading and false information. GMP has come down but not in negative. LIC has placed their big order which means it is going to be the anchor investor for this IPO.
Hello namesake! You shouldn’t be applying for listing gains. Wrong approach to an Insurance company. If you really wish to make money, real money, you need to “invest”. Long term. As far as the GMP is concerned it’s not full proof. Things could go either way on listing. But demand for GIC Re can’t be underestimated which we will either see on the last day of the bidding or few days post listing. Good luck.
Few – ves worth considering before investment: Underwriting losses, high exposure to crop with concentration of almost 30% (monsoon dependency), most of ipo proceeds going to govt instead of capacity building, gaps visible in revenue and market cap
Few things that investors need to understand about this IPO.
First – There is no discount in grey market but not great demand too as it is a big IPO and everyone in the retail category will get allotment. grey market demand is when there is shortage. In this case there is no shortage of shares. Just because there are many shares, it wouldn’t cause discount! That’s laughable!!
Second – Underwriting losses are not like poor decisions which could have been avoided. Insurance is a business where one can not predict future and there are some years when claims just shoot up. This is a more important call investors need to take. If general insurance companies are fine for them, GIC should be a reasonable bet.
I personally like the business and I’m investing. Even if discounted listing for some other reason, this is the kind of stock I would like to hold.
I agree, Iam invested n hope to make money in gic. Even if 5% profit on ipo price it will be good amount on 50000 application
Ankit is right. Just wait and watch, it will be like Coal India…
Everyone will make money
it will not give +ve listing, Because based on past analysis it give -ve or if give +ve not more than 2-4 %
There’s no past for a near-monopoly reinsurer.
Retail catagory me itna kom subscribe? I don’t belive this !!!!! 45/- discount dene k bad v pura nehi vora. Wo v sarkari company………..
Looking at the limited downside, I made two applications for total 3 lakh. My reasoning is that even in the case of listing at 5% premium, full allotment will make me good profit.
IMO, it is calculated risk with limited downside that makes good money in stock market. I made good money the same way in ICICI Prudential after listing.
Still, don’t get why there is so much negativity on GIC on IPO forums. It is a good company and pricing is not high.
Anyway, let’s see how it goes!
It’s a very good IPO. But we can’t expect huge gain in the listing date. But we can keep this shares as long term assets..
GIC IPO will not be listed at discount. Govt. of India wishes to further it’s disinvestment process. GIC is a GOI disinvestment, if the retail investors suffer any loss in this IPO on the day of listing, the retail investors will be demotivated to subscribe to any other IPO by any PSU in a short future period. This will hamper the disinvestment target of the GOI. To avoid any such demotivation and thereby reluctance of the retail investors in the future, the GOI will ensure that the retail investors don’t suffer in any manner for atleast a short forseable period. Thus GOI will put its financial institutions on standby and order them to buy at amounts that don’t hurt the retail investors. The GOI can also gift the retail investors in DIWALI by giving away profits by raising the listing price, so as to promote more retail participation for future IPO’s of govt. PSU’s. In any manner what so ever, it does not seem that GIC will list at a discount. Also, if this opens at a discount, the retail participants who have just started to open up their wallets thereby contributing to the oversubscriptions to the IPO may again close their wallets. Institutional investors and HNI’s who have profited heavily from the IPO season this year, cannot afford to lose the retail enthusiasm, they are also well aware of the fact that if this opening hurts retail investors, they may not be able to make much earning in the forthcoming IPO’s and hence they will also ensure not to let this IPO list at a discount. This IPO was undersubscribed by retail investors and the GOI and other financial institutions will make it a point by giving huge profits to the retail subscribers so that those who missed it would regret it and not miss future IPO’s. In any case GIC will be a huge success.
Allotment time kya hai?
Apply at lower price 855. Muje bhi milega ya nai
NAI MELAGA
You won’t get allotment
Always apply at cutoff price
I applied at three different price and allotted at highest bid – 912
Alloted three lots @867. Got message from bank.
Linktime or Karvey are not showing IPO allotment?
My bount of Rs. 1313,872/- has been transferred to GIC…IPO allotment ka koi message nahi aya…
Guide please
Plz give link to check gic ipo allotment status
allotment to all applied
16 shares allotted for me . each share cost – 867 Rs. how much can I expect listing price?
don’t know what will be happened on 25th oct,
because Indian Energy Exchange IPO already listed in negative after multiple of subscriptions.
I expect 940 as listing price .
Junjun
Fear not 940 listing price is expected .
Listing @ 850. Dabba gulll …! If this way these issue opens, public will be away from future divestment issues of GOI companies
899 Price so no worry
very true
never invest in Govt cos
SATYANASH
I’m still holding, going as per plan. /giving this investment two weeks for making 3-4%