GIC Re on Monday filed its draft red herring prospectus (DRHP) with the Insurance regulator to raise over `7,000 crore by selling close to 15% stake in combination of new and existing shares.
“We have asked GIC to have one to two independent directors on board,“ said a senior Irda official.GIC has a net worth of `45,000 crore, including fair value.Valuation of the company will depend on factors such as net worth, combined ratio and investment book. From a book value, net worth and assets point of view, GIC has strong financials.
GIC Re has reported 10% growth in profit after tax to `3,127 crore in FY17 over previous year.
GIC Re is hopeful of listing on stock exchanges in this financial year. It has appointed bankers incl u d ing Axi s Cap i t al , Ci t i, Deutsche Bank, HSBC and Kotak Investment Banking to manage the IPO.
GIC has bring down its combined ratioa measure of profitability to 99.7% in FY17 as compared to 107.4% in the previous year.
Source : The Economic Times