India’s state-backed reinsurance company, General Insurance Corporation of India (GIC Re), has filed for an initial public offering (IPO) with the Securities and Exchange Board of India.
According to a draft red herring prospectus, filed August 7th, 2017, the firm plans to sell 17.2 million new shares, while the government, which currently owns 100% of GIC Re, will sell roughly 107.5 million shares in the IPO.
This amounts to 124.7 million shares, which, means the IPO would constitute 14.22% of the firm’s post-offer paid-up equity share capital, claims the filing.
According to reports from the region that cite people close to the matter, the offering is expected to come to market around October or November time, 2017, and could raise upwards of $1 billion.
Reports claim the sale would assist the Indian government in reaching its fiscal deficit target of 3.2% of gross domestic product (GDP) for the year ending March, and the GIC Re divestment is one of a number of offerings the Indian government is part of in an effort to meet its fiscal deficit target.
