Sign in Subscribe
Credit insurance

Government to Proceed with IPO of Export Credit Guarantee Corporation (ECGC) in Current Fiscal Year

Strategic Insights

— 2 min read

The government has given the green light for the initial public offering (IPO) of the Export Credit Guarantee Corporation (ECGC) in the current fiscal year, four years after the Cabinet Committee on Economic Affairs approved the listing. This move aims to unlock the company's market value, mobilize fresh capital for expansion, and strengthen export credit insurance schemes. The ECGC reported a net profit of Rs 2,077 crore in FY25 and has introduced measures to support exporters, including enhanced cover for banks and digitalization of processes.

Key Takeaways:

  • The government plans to list the Export Credit Guarantee Corporation (ECGC) in the current fiscal year, four years after the Cabinet Committee on Economic Affairs approved the listing.
  • The proposed listing aims to unlock the company's market value, mobilize fresh capital for expansion, and strengthen export credit insurance schemes.
  • The ECGC reported a net profit of Rs 2,077 crore in FY25, with a 16% rise in the value of exports supported under its policies to Rs 8.55 lakh crore.
  • The company has introduced measures to support exporters, including enhanced cover for banks, digitalization of processes through a revamped ERP & client portal system, and a common facilitation Centre for exporters and banks.
  • The ECGC's Maximum Liability (ML) cover will be raised from Rs 1.5 lakh crore to over Rs 2 lakh crore.
  • The company's solvency ratio is 57.13, far above the Insurance Regulatory and Development Authority of India's (IRDAI) mandated minimum of 1.50.
  • As of March 31, 2025, the ECGC's net worth stood at Rs 13,484.76 crore, comprising Rs 4,338 crore in paid-up capital and Rs 9,146.76 crore in reserves and surplus.
  • The company introduced strengthened measures to support exporters and mitigate emerging trade risks, including enhanced cover for collateral-free Export credit to Micro and Small Exporters.

Statistics:

  • Net profit of the ECGC in FY25: Rs 2,077 crore
  • Value of exports supported under ECGC policies in FY25: Rs 8.55 lakh crore (16% increase from FY24)
  • Gross premium collections in FY25: Rs 1,367 crore (record high)
  • Claims settled in FY25: Rs 453.46 crore (up marginally from Rs 450.31 crore in FY24)
  • Solvency ratio of the ECGC (as of March 31, 2025): 57.13
  • Net worth of the ECGC (as of March 31, 2025): Rs 13,484.76 crore
  • Paid-up capital of the ECGC (as of March 31, 2025): Rs 4,338 crore
  • Reserves and surplus of the ECGC (as of March 31, 2025): Rs 9,146.76 crore

Sources:

  • IE Online Media Services Pvt. Ltd. (2025) "Government to proceed with IPO of Export Credit Guarantee Corporation in current fiscal year: sources"
  • Contify.com (2025) "Government to proceed with IPO of Export Credit Guarantee Corporation in current fiscal year: sources"

Read more