Mumbai, Oct 25 (PTI) The General Insurance Corporation of India (GIC), which made stock market debut today, after having concluded the Rs 11,370-crore IPO, will use its proceeds for further strengthening its solvency margin level and fuel business growth.

GIC Re’s IPO was oversubscribed 1.38 times during October 11-13. The country’s largest reinsurer and world’s 12th largest reinsurer had fixed the price band at Rs 855-912 for its IPO.

The company proposes to utilise the proceeds towards augmenting the capital base to support business growth and improve solvency levels as also for business growth.

“We will utilize the proceeds of the IPO in further strengthening the company’s solvency level to more than 2 in near future from 1.79 at present and fuel the business growth,” GIC Re chairman and managing director Alice Vaidyan told reporters here today.

“GIC Re is all set to become 10th largest reinsurer in the world, from the 12th largest reinsurer as of now, by the fiscal-end,” she said.

Axis Capital, Citigroup, Deutsche India, HSBC Securities and Kotak Mahindra Capital were the book running lead managers to the offer. The shares of General Insurance Corporation of India were listed on NSE.

As of now, the company holds 60 per cent of market share on the reinsurance space in the country and its business was in the ratio of 70:30 when it comes to domestic versus international business.

The company writes business in 161 countries of the world at present.

Vaidyan said that the company was open to inorganic growth too.

“We have an ambition to have a Lloyd’s Syndicate which is very much under the process,” she said, adding “it will be followed by having our office in China.”

According to Vaidyan, the recent natural disasters in the US will have a slight impact on the reinsurance cost in the country.

“The recent natural disasters in the US will have slight impact on the reinsurance cost within the country as most of the reinsurers globally have taken a hit. Still, I do believe that the impact will not be much in the country for a simple reason that we haven’t have any major such event here,” she said.

This is published unedited from the PTI feed.