GIC RE's 11,370-crore IPO open ,Know these things before investing

The country's largest re-insurance company, General Insurance Corp of India (GIC RE) has launched its initial public offer (IPO) to raise Rs 11,370 crore. This is the country's third largest IPO. Earlier, Coal India has brought Rs.12,200 crore and Reliance Power IPO of 11,700 crore rupees.

For an insurance company to manage its risk, the insurancepurchased from the second insurance company is called reinsurance. GIC RE isconnected to this business and the company gives reinsurance to every non-lifeand half-life insurance companies in India. GIC RE receives 5% of everycompany's policy portfolio.

GIC RE's IPO of Rs 11,370 crore will be launched this week. The price band of IPO has been fixed at Rs 855- 912. The IPO will open for subscription from Oct 11 and closes on October 13. Through the issue, the company will sell 14.22 percent stake. The government will sell its stake in 12.26 percent and the remaining 1.96 percent is selling the company. Axis Capital, Citigroup, Deutsche India, HDFC Securities and Kotak Capital are the managers of the issue.

What are the experts
Expert advised investors to invest in GIC RE's IPO. He said that it is a big government company of General Insurance Sector. The company's growth is quite good. Long term can be invested in this IPO.

GIC RE is India's largest re-insurance company in terms of gross premiums taken in FY17. Also, this year, 60 per cent of GIC RE got the premium paid by the insurance companies of India to the reinsurance companies.

GIC offers re-insurance services in key areas including RE Agriculture, Marine, Engineering, Fire, Property, Motor, Health, Credit and Financial and Life Insurance.