Management shift: The stock of General Insurance Corporation has increased by more than 75% year to date, outpacing the 15% increase in the benchmark Nifty 50.
General Insurance Corporation (GIC Re) shares increased by more than 8% after a significant management shift that replaced deputy general manager Satheesh Kumar with Suresh Savaliya as company secretary, compliance officer, and key managerial staff as of December 11.
GIC Re shares were up 8.13 percent at Rs 329.75 on the National Stock Exchange (NSE) at 9:34 a.m. The stock has risen more than 75% so far this year, outpacing the benchmark Nifty 50, which has soared more than 15% during this time.
The GIC Re stock has experienced a remarkable surge of more than 47% during the past month, increasing its market capitalization to more than Rs 57,700 crore. The reinsurer’s strong outlook, credit rating upgrade, and outstanding financial performance are all responsible for the surge.
Investors have begun to comprehend the company’s operations and businesses as a result of the management team’s recent non-deal road shows.
GIC Re’s credit rating has been upgraded due to its strong financial performance in FY23, which is assisting the company in securing significant international orders. According to GIC Re CMD N Ramaswamy, all of these factors have caused the share price to soar, as he stated in a recent interview with CNBC-TV18. The rapid increase in value could also be attributed to GIC Re’s low public float.
The company is owned by the government to the tune of 86%, LIC owns 9%, and the remaining 5% is in public hands. Frequently, stocks with a low public float exhibit significant fluctuations in low volume.
