Shares of General Insurance Corporation of India made a weak debut at the bourses on Tuesday, falling nearly 7 per cent, against the issue price of Rs 912. The stock listed at Rs 850, down 6.79 per cent from the issue price on BSE. It later tumbled 14.44 per cent to Rs 780.25.
At NSE, shares of the company debuted at Rs 850, a loss of 6.79 per cent against the issue price. In terms of equity volume, 11.59 lakh shares of the company were traded on BSE and over 98 lakh shares changed hands at NSE during the day.
The company’s market valuation stood at Rs 70,540.04 crore. GIC Re’s IPO was oversubscribed 1.38 times during October 11-13. The reinsurance company had fixed the price band at Rs 855-912 for its IPO.
The company proposes to utilise the proceeds towards augmenting the capital base to support business growth and maintain current solvency levels as also for general corporate purposes.
Axis Capital, Citigroup, Deutsche India, HSBC Securities and Kotak Mahindra Capital were the book running lead managers to the offer.