InvestorQ : What is the reason for GIC Re rallying 60% in one month?
prachi Patwardhan made post

What is the reason for GIC Re rallying 60% in one month?

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sara Kunju answered.
4 months ago
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GIC Re touched a 52-week high of Rs 230 and Tuesday was another day of upper circuit. The stock has rallied over 65% in one month. The big trigger has come from reports that government was considering privatisation of United India and GIC Re. This is part of the aggressive divestment agenda of the government for FY22. GIC Re is the largest reinsurer in the domestic reinsurance market in India and private ownership will be a big boost.

The stock is likely to be positively re-rated post privatization as it is expected to bring in best in class practices and management to the table. At the same time, a market driven approach can be conducive to growth.

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