About the Company:
General Insurance Corporation is the largest reinsurance company in India in terms of gross premiums accepted in Fiscal 2017.
Company accounted for close to 60% of the premiums ceded by Indian insurers to reinsurers during Fiscal 2017.
GIC is also an international reinsurer that underwrote business from 162 countries as at March 31, 2017.
Company was ranked as the 12th largest global reinsurer in 2016 and the 3rd largest Asian reinsurer in 2015, in terms of gross premiums accepted.
They provide reinsurance across many key business lines including fire (property), marine, motor,engineering, agriculture, aviation/space, health, liability, credit and financial and life insurance.
Company’s top ten clients accounted for 56.33% of their gross premiums on a restated consolidated basis in Fiscal 2017.
Company has also developed overseas business through their 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.
Company’s reinsurance from Outside India represented 30.53% of their total gross premiums on a restated consolidated basis.
In addition to company’s Indian investment assets, they hold fixed term deposits at banks outside of India from which company earned Rs.99.7 crores as interest income in Fiscal 2017.
GIC has been rated “A-” (Excellent) with a stable outlook by “AM Best” for 10 consecutive years.
Company also have been consistently rated “AAA” with a stable outlook for our claims paying ability by “CARE Ratings” since 2004.
Management Team:
- Ms.Alice G Vaidyan (Designation: Chairman-cum-Managing Director)
- Mr.Ravi Mital (Designation: Non-Executive Director)
- Ms.Usha Sangwan (Designation: Independent Director)
Objectives of the Issue:
Offer for Sale : Company will not receive any proceeds from the Offer for Sale.
Fresh Issue:
- To Augment the capital base of the Corporation to support the growth of company’s business and to maintain current solvency levels.
- General corporate purposes.
Peer Group Companies:
- There are no listed reinsurance companies in India. Accordingly, it is not possible to provide an industry comparison in relation to the Company.
Positives for the Company:
- Experienced Management team.
- Leader in Indian reinsurance industry with a trusted brand and 44 years of experience.
- Significant global player with growing international presence.
- Diversified product portfolio and revenue streams.
- Diversified investment portfolio generating strong growth and attractive yields.
- Strong financial track record and a strong balance sheet.
- Consistent Dividend Payer.
| Company Contact Info: |
|---|
| General Insurance Corporation Ltd ‘Suraksha’ 170 J Tata Road Churchgate, Mumbai 400 020 Tel: (91 22) 2286 7000 Fax: (91 22) 2288 4010 E-mail: investors.gic@gicofindia.com Website: www.gicofindia.com |
| IPO Registrar Info: |
|---|
| Karvy Computershare Private Limited Karvy House, 46, Avenue 4, Street No. 1, Banjara Hills, Hyderabad – 500 034 Andhra Pradesh, India Phone: +91-40-23312454 Fax: +91-40-23311968 Email: gic.ipo@karvy.com Website: http://karisma.karvy.com |
| Check IPO Allotment Status: |
|---|
Karvy Websitehttp://kosmic.karvy.com:81/ipotrack/ |
Financials of the Company:
| (in Crores) | FY 15 | FY 16 | FY 17 |
|---|---|---|---|
| Revenue | 15270.1 | 18534.2 | 33740.7 |
| Net Profit | 2890.9 | 2823.4 | 3140.6 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 11th October 2017 |
| Issue Closes on:. | 13th October 2017 |
| Issue Price | Rs.855 – 912 |
| Retail Discount | Rs.45 per share |
| Face Value | Rs.5 |
| Minimum Lot | 16 |
| Minimum Investment | Rs.14,592 (Retail-Rs.13,872) |
| Issue Constitutes | 14.21% |
| Issue Size | Rs.11,372 cr ($1.74 billion) |
| Market Cap | Rs.80,000 cr ($ 12.3 billion) |
| Listing at | NSE & BSE |
| Fresh Issue | 1,72,00,000 |
| OFS (Offer For Sale) | 10,75,00,000 |
| Equity Shares Offered (Fresh + OFS) | 12,47,00,000 |
| Equity Shares Prior | 86,00,00,000 |
| Equity Shares after the issue | 87,72,00,000 |
Important Dates:
| Finalization of Basis of Alottment | on or before 18th October 2017 |
| Initiation of Refunds | on or before 23rd October 2017 |
| Credit of Equity Shares: | on or before 24th October 2017 |
| Listing Date: | on or before 25th October 2017 |
Subscription Details (Will be Updated):
| (Subscription-Category-Wise (no. of times) Till time : 06:25 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 62,277,900 | 1.55 | 1.67 | 2.27 |
| NII | 18,683,371 | 0.01 | 0.0124 | 0.129 |
| Retail | 43,594,532 | 0.06 | 0.158 | 0.585 |
| Employee | 144,197 | 0.13 | 0.419 | 1.098 |
| TOTAL | 124,700,000 | 0.80 | 0.89 | 1.362 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 36.52 | 24.97 | 16.09% | 226.90 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 20% |
