General Insurance Corp of India (GIC Re) today kicked off its Rs 11,370 crore initial public offer offering 12,47,00,000 shares of face value of Rs. 5 in a price band of Rs 855 – 912 per share.
The issue closes on 13 October 2017 and the shares will be listed on the exchanges on or about 25 October 2017. Investors can bid for a minimum of 16 shares and in multiples of 16 thereafter.
If you are an investor then i am sure you would be wishing to invest in this public issue and you would be searching about GIC Re IPO Grey Market Premium.
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I am sure if you are thinking to apply in this Public Issue then you might be searching about Grey Market Premium (GMP) for this issue which can give you some basic idea about what could be the listing price of this issue.
Grey Market Premium of GIC Re IPO :
According to current market report, the Grey Market Premium of MASGeneral Insurance Corp of India (GIC Re) is somewhere around Rs. -10 to -20 i.e, people are expecting the shares to list on the exchanges with a discount ranging between Rs. 10 – 20.
This information is obtained from various sources from various cities across India.
Retail Investors are offered a discount of Rs. 45 per share and hence even if the shares list at some discount still then retail investors will make around 25 to 35 Rs. per share which translate into 2.5 – 3 % lsting gains.
On the other hand if the shares list at issue price, then retail investors will make around 5 % listing gains and in best case scenario if shares list with 4 – 5 % listing gains just like the case of recent big ticket issues like ICICI Lombard and SBI Life then retail investors will make around 10 % listing gains.
One advantage of this issue is due to its big size, retails investors will get complete allotment meaning that if a investor applies of max limit of Rs. 2 lakhs then he will get shares worth Rs. 2 Lakhs and that can translate into gains ranging from 5,000 (2.5%) to 20,000 (10%).
There are talks in market circles that if the issue gets good response from QB and NII then the grey market discount will get converted into premium.
GIC Re IPO Kostak Price (Minimum Application) – Rs. 700 per application.
GIC Re IPO Subject to Sauda – Rs. 2500 per Lot (For Rs. 2 lakh Application).