Economy

Issue Subscribed 65% So Far On Day 3

Retail investors, whose bid value can not exceed Rs 2 lakh per application, bid for 5.6% of the shares reserved for them. Investors can bid for a minimum of 16 shares and in multiples of 16 thereafter. HNIs typically bid on the final day of a public offering to minimise their IPO financing costs.

In terms of valuation, the IPO would be the country's third biggest after Coal India's 15,200 crore and Reliance Power's Rs 11,700 crore issues.

At its upper band, GIC, India's only reinsurer, expects to raise Rs 11,372.64 crore from the offer, valuing the company at around Rs 80,000 crore at the upper end.

Shareholders of the electricity exchange were selling a little over 6 million shares, or 20 percent of the post-issue paid-up capital, in the IPO. The IPO will close on 13 October.

The IPO is to collect around Rs 11372.64 crore at the upper band of the issue price of Rs 912 per share (face value Rs 5 per share) and Rs 10661.85 crore at the lower price band of Rs 855 per equity share. The public offer will result in a 14.22% stake dilution.

However, the duo at Centrum highlighted list of risk factors for the company.

The offer for sale comprises 10.75 crore shares by the Union government.

GIC Re is the largest reinsurance company in India in terms of gross premiums accepted in financial year 2017.

Axis Capital, Kotak Mahindra Capital and IIFL Holdings were the bankers managing the sale. Ltd and a bunch of other investment firms as backers, sailed through on the final day with support from institutional and retail investors. "The anchor book, which is available in the public domain, identifies the calibre of investors who were interested in participating in the offer and shows their confidence in the company", the spokesperson added. The earlier offer size, excluding the anchor book, was 4.24 million shares.

The company said on Wednesday it was reducing the number of shares initially allotted to anchor investors after it was informed of a rule that does not allow subscriptions by foreign portfolio investors. Companies are required to set aside a proportion of the IPO shares for anchors who are part of qualified institutional buyers.

Indian Energy Exchange (IEX) on Saturday garnered a little over Rs 300 crore from anchor investors. The anchor portion has now reduced to Rs 130 crore.

"The company would like to reiterate that this development is arising out of regulatory concerns raised by the custodians rather than any pricing concern".

The company, along with the BRLMs, has made a decision to focus on domestic investors in order to avoid any changes to the offer timetable and achieve listing as anticipated, he said.



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