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General Insurance Corporation of India IPO Prospectus
What Are Analysts Saying?
GIC Reinsurance IPO: Fairly priced; Subscribe for long term
Asit C. Mehta, 11 Oct 2017
GIC Re is the India’s largest reinsurance company in terms of gross premium accepted. It has significant global player with growing international presence. With diversified product portfolio, superior investment yield coupled with the first-mover advantage, under penetrated nature of overall insurance sector augur well for GIC Re in the long run.
GIC Reinsurance IPO: A good long term investment
SPA Securities, 11 Oct 2017
GIC Re is the largest reinsurance company in India in terms of gross premiums accepted in FY17, which account for app. 60% of the premiums ceded by Indian insurers to reinsurers during FY17. We recommend subscribe to the issue as a good long term investment.
All you need to know about GIC IPO
Motilal Oswal, 11 Oct 2017
We are positive on GIC for long term as both general and reinsurance sector in India provides huge opportunity for growth as it is highly underpenetrated compared to other developing and developed economies. The company has delivered decent Revenue/PAT growth of 25%/9% in FY14-17.
Long term investors may opt for GIC IPO
SMC, 10 Oct 2017
Considering the P/E valuation on the upper end of the price band of Rs. 912, the stock is priced at pre issue P/E of 36.52x on its FY17 EPS of Rs. 24.97. Post issue, the stock is priced at a P/E of 25.47 x on its EPS of Rs. 35.80.
General Insurance Corporation of India IPO: Subscribe for long term gains
Prabhudas Lilladher, 10 Oct 2017
GIC Re’s IPO price of Rs885‐912 implies a valuation of 25.7x‐27.4x on Mar‐17 EPS which is fairly priced in our view. RoE is also expected to remain good in the range of 15‐18%.
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Issue Details
Open Date: 11 Oct 17
Close Date: 13 Oct 17
Offer Price: Rs. 855
Issue Size: Rs. 11,372.64 Cr
Min Application Amount:
Rs. 13680
Min bid (No. of shares): 16
Listing Exchanges: BSE, NSE
About the Company
"Incorporated in 1972, General Insurance Corporation of India is the largest reinsurance company in India in terms of gross premiums. They provides various general insurance products like property, energy, marine, engineering, miscellaneous, aviation-hull/spares-rotor wing, aviation-hull/spares-fixed wing, liability, aviation treaty–hull, spares and liability insurance products. They also offers cargo and offshore energy, motor, life, agriculture, space, health, credit and financial insurance.

They offers reinsurance solutions for the Afro-Asian region and reinsurance programs in South East Asia, the Middle East and Africa. They develop their 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.

Competitive Strengths

1. Leader in Indian reinsurance industry with 44 years of experience
2. International presence
3. Diversified product portfolio and revenue streams
4. Strong financial track record and a strong balance sheet
5. Experienced management teamAs of September 30, 2016 Company had more than 530,000 active loan accounts and 3,200 Customer.

MAS Financial offer product and services under 5 categories:
1. Micro-enterprise loans
2. SME loans
3. Two-wheeler loans
4. Commercial Vehicle loans
5. Housing loans

Company also have commission based direct sales agents and revenue sharing arrangements with various dealers and distributors where part of loan default is guaranteed by such sourcing partners.

Company Strengths
1. Over 2 decade in business. Track record of consistent growth with quality loan portfolio
2. Diversified product offerings
3. Access to diversified sources of capital and cost-effective funding
4. Developed an extensive operational network in Gujarat and Maharashtra
5. Robust credit assessment and risk management framework. "
Objective of the Issue
"Objects of the Issue:

The Offer comprises of the Fresh Issue and the Offer for Sale.

1. Offer for Sale

Corporation will not receive any proceeds from the Offer for Sale.

2. Fresh Issue

Corporation proposes to utilize the Net Proceeds from the Fresh Issue towards:
(i) Augmenting the capital base of the Corporation to support the growth of their business and to maintain current solvency levels; and
(ii) General corporate purposes."
Subscription Details
Investor Category No of times
Qualified Institutional Investor -
Non Institutional Investor -
Retail Investor -
Total -