General Insurance holds biggest IPO since 2010

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An initial public offer (IPO) to raise ₹113 billion (US$1.7 billion) by the country’s only reinsurance company General Insurance Corporation of India (GIC Re) was the largest since Coal India’s 2010 IPO. With the price band set at ₹855-912, GIC Re’s IPO was 1.38 times oversubscribed.

Khaitan & Co acted as domestic counsel to the book running lead managers to the issue Citi Global Markets India, Axis Capital, Deutsche Equities India, HSBC Securities and Capital Markets (India) and Kotak Mahindra Capital.

“We acted as the underwriters’ Indian legal counsel,” Khaitan & Co partner Abhimanyu Bhattacharya told India Business Law Journal. “We advised (them) on various aspects of the transaction including due diligence, financial statements disclosure requirements, reviewing of the prospectus, negotiating transaction agreements, reviewing applications and submissions to SEBI [the Securities and Exchange Board of India] and IRDAI [the Insurance Regulatory and Development Authority of India].”

The company proposed to use the net proceeds from the fresh issue towards augmenting its capital base to support the growth of the business and maintain current solvency levels.

Bhattacharya added, “whilst we have advised on IPOs by insurance companies such as SBI Life, Reliance General and ICICI Prudential, the reinsurance business has its own peculiarities which were very interesting and required us to craft our due diligence and approach to disclosures to suit the needs of this transaction.”

Bhattacharya was supported by associate partner Madhur Kohli, principal associate Soumya Mohapatra and associates Barkha Doshi and Pranav Agarwal along with assistance from senior associate Rohan Singh.

Cyril Amarchand Mangaldas was the issuer’s domestic legal counsel, while Clyde & Co was the issuer’s international legal counsel. Herbert Smith Freehills was the international legal counsel for the book runners.