Shares of General Insurance Corporation of India on Wednesday listed at ₹850, a discount of 7 per cent, to the issue price of ₹912 on the NSE. The stock further tumbled to ₹780 but recovered strongly to close at ₹898 on the NSE, but still 1.5 per cent lower to the IPO price. The stock hit a high of ₹899.
However, for retail investors, the stock gained 3.5 per cent, as they were allotted shares at ₹867.
Over 2.75 crore shares were changed hands on the NSE and 43.82 lakh shares were traded on the BSE, where the stock closed at ₹870.40.
GIC Re’s IPO, which was opened between October 11 and 13 was subscribed by 1.37 times.
The reinsurer’s ₹11,370-crore IPO is the third largest after Coal India and Reliance Power.
In the IPO, the Centre has offloaded 10.75 crore shares to raise about ₹9,800 crore, while GIC Re is issuing fresh equity shares worth ₹1,580 crore.
The IPO could lead to dilution of about 14.2 per cent stake.
The company proposes to utilise the proceeds towards augmenting the capital base to support business growth and improve solvency levels as also for business growth.
Reliance Nippon LifeMeanwhile, the IPO of Reliance Nippon Life Asset Management saw a strong demand from investors. At the end of day one of the issue, the IPO was subscribed by 4.63 times. The company has fixed the price band at ₹247-252 a share for the IPO.
In fact, the ₹1,542-crore issue was fully covered within one minute of opening due to strong demand from high net worth individuals.
The IPO received bids for 19.85 crore shares against the total issue size of 4.28 crore shares, according to data available with the NSE.
The IPO will close on October 27.
Reliance Nippon Life on Tuesday raised ₹462.67 crore from anchor investors, who include Abu Dhabi Investment Authority, Kuwait Investment Authority, Fidelity International, Columbia Threadneedle Investments and Pictet.