General Insurance Corporation of India IPO Message Board (Page 65)

Good Start. I think negative GMP will turn into positive after IPO closing date.This Combo Pack (Life + General + Re-insurance) will attract QIBs.

Me too. It''s a big daddy of Re insurance. It''s a portfolio stock. Not a touch and go type.

BUT LOWER PRICE BAND YA UPPER PRICE BAND PLEASE CONFIRM ?

Suppose retail portion subscribes at 0.7 times and we apply at lower band. Suppose overall subscription is 4 times. Will we get allotment in that case ?

As far as the retail individual investors (RIIs) are concerned, the process of allocation of shares is different. The maximum amount which retail investors can apply per IPO is Rs. 2 lakh. In order to determine the total demand for shares in the retail investor category, all the applications are grouped together and the total number of applications are calculated. If the number of applications are more than the number of shares offered for retail investors, the maximum RIIs who are eligible for the allotment of the minium bid lot are determined.

The total number of equity shares available for allotment to RIIs is divided by the minimum bid lot. This gives the maximum number of RIIs who can be allotted the shares.
For example - If shares worth Rs. 20 lakh need to be allotted to the retail segment and the minimum lot size is Rs. 10,000, only a maximum of 200 applicants will be allotted the shares with the minimum lot of Rs. 10,000.

If the number of RIIs exceed the maximum RII allottees, the RIIs (in that category) who will be eligible for the minimum bid lot will be determined on the basis of draw of lots. This is a computerised process and hence there is no room for partiality.

If Retail portion is undersubscribed and an investor has applied at lower price, but if other portions are oversubscribed at upper price, Issue Price will be fixed at Upper Price and application with lower Price will get rejected.