In October 2017, who launched India’s 3rd biggest ‘Initial Public Offering (IPO)’ of Rs. 11,370 crore?
GIC Re
Understanding India’s Significant Initial Public Offerings (IPOs)
An Initial Public Offering (IPO) is the process by which a private company can go public by selling shares of its stock to the general public. It is the first time a company offers its shares for sale on a stock exchange, allowing it to raise capital from public investors.
In October 2017, the Indian stock market saw one of its largest public share issues. The question specifically asks about the entity that launched India’s 3rd biggest IPO at that time, valued at Rs. 11,370 crore.
Identifying the Issuer of the Rs. 11,370 Crore IPO in October 2017
Based on market data and reports from October 2017, the entity that launched an IPO of Rs. 11,370 crore was GIC Re.
- GIC Re stands for General Insurance Corporation of India. It is a major reinsurance company in India.
- Reinsurance is essentially "insurance for insurance companies." Reinsurers take on a portion of the risks that insurance companies underwrite, in exchange for a portion of the premium.
The IPO aimed to raise funds for the company and also provide an exit route for the government, which was the major shareholder.
Significance of the GIC Re IPO Size
The Rs. 11,370 crore IPO was indeed one of the largest seen in the Indian market up to that point. While market dynamics change and larger IPOs have occurred since, at the time of its launch in October 2017, it held the position of being the 3rd biggest IPO in India's history.
Comparison with Other Major Indian IPOs (Around 2017)
To put the GIC Re IPO size into perspective, here is a brief look at some of the largest IPOs in India around that period:
| Company | Year | IPO Size (approx.) | Significance (at the time) |
|---|---|---|---|
| Coal India Ltd | 2010 | Rs. 15,199 crore | Largest IPO then |
| Reliance Power | 2008 | Rs. 11,563 crore | Second largest then |
| GIC Re | 2017 | Rs. 11,370 crore | Third largest then |
| DLF | 2007 | Rs. 9,188 crore | Fourth largest then |
This table illustrates that the GIC Re IPO was very close in size to the Reliance Power IPO and smaller than the Coal India IPO, confirming its position as the 3rd largest in India's history up to October 2017.
Revision Table: GIC Re IPO Key Facts
| Detail | Description |
|---|---|
| Company | General Insurance Corporation of India (GIC Re) |
| IPO Date | October 2017 |
| IPO Size | Rs. 11,370 crore |
| Historical Ranking (at the time) | 3rd biggest IPO in India |
| Sector | Reinsurance |
Additional Information: Understanding IPO Process
The IPO process involves several steps:
- Hiring Underwriters: Investment banks help the company prepare for the IPO.
- Filing with Regulator: In India, the company files a draft prospectus with SEBI (Securities and Exchange Board of India).
- Roadshow: The company and underwriters market the IPO to potential investors.
- Pricing the Shares: Based on demand and market conditions, the IPO price is determined.
- Listing: Shares are listed and begin trading on the stock exchange(s).
IPOs are significant events for companies to raise capital and for investors to participate in the company's growth from an early stage.
Important Questions from Financial Organisations
Federation of Indian Chambers of Commerce and Industry was established in ___________.
When was NABARD established?
Small Industries Development Bank of India (SIDBI) is regulated by _______.
What does 'E' stand for in SEBI?
Which of the following is NOT a limitation of financial accounting?
