Shares of GIC RE listed on the bourses and the performance was poor. Shares were issued at Rs 912 with a discount of Rs 45 to retail investors and employees. The share listed at Rs 850 on both the exchanges. The share came under pressure right away and made a low of Rs 780.25 on the BSE and Rs 780 on the NSE. From there on it was a slow grind and the share moved upwards literally inch by inch.
The last hour there appears to be some interested buying which saw the share recovering rapidly and once it crossed the discounted cost price of retail investors at Rs 867, it was a straight climb to the highs of the day of Rs 895 on the BSE and Rs 899 on the NSE.

The total traded volume was 3.19 cr shares which was 26.62% of the IPO issue size. Delivery volume was 1.39 cr shares which was 43.72% of the traded volume and 11.64% of the IPO size. There were no anchor investors as the investment arm of the Government of India believes that anchor allocation being discretionary is unfair. They therefore have no anchor investors in their IPO’s.

The weighted average of the day was Rs 840.04 on the BSE and Rs 844.84 on the NSE which were significantly lower than the closing prices of the day. The share closed at Rs 870.40 on the BSE which was lower by Rs 41.60 or 4.56% than the issue price. On the NSE the closing price was Rs 874.30, a loss of Rs 37.70 or 4.13%. There were no institutional trades which were reported.

Theoretically the share managed to reach in the last 15-20 minutes of trade the issue price for retail investors and managed a close above the same. This price looks unsustainable in the immediate short term and there is likely to be selling pressure in the coming days.

The issue was subscribed 1.38 times with QIB portion subscribed 2.25 times. HNI portion was undersubscribed at 0.22 times and Retail undersubscribed at 0.63 times.
GIC becomes the third insurance company to list in less than six weeks and two more issues are to follow in the next ten days. Once these five issues along with ICICI Prudential which listed last year, there would be ample representation from the insurance sector.

The present three issues from ICICI, SBI Life and GIC RE would have raised between 26000-27000 crs. New India and HDFC would happen in the next few days and would take this fund-raising figure to higher than Rs 40,000 crs.

A poor listing by all standards and does not augur well for the primary market.

Reliance Nippon Life Asset Management Limited which had tapped the capital markets with its offer for sale of 6.12 cr shares in a price band of Rs 247-252 was subscribed 81.54 times.
The issue was subscribed 118.40 times by QIB investors, 209.44 times by HNI Investors and was subscribed 5.65 times by retail investors. There were 16.37 lakh applications and the same on basis of lots was subscribed 4.51 times.

The cost of funding for the leveraged HNI would be between Rs 55-56. Rs ompleted allocation to anchor investors. Earlier the company had allotted 1,83,60,000 shares to 35 anchor investors at Rs 252.

The highest allocation was made to BNP Paribas Arbitrage fund of 2063 lakhs which amounts to 11.24% of the anchor allotment.

Full details of the subscription bucket wise is given below:-