Government of India has announced an Offer for Sale (OFS) of its stake in General Insurance Corporation of India (GIC). Through this move, the government plans to dilute up to 5% of its holding in the company.
The floor price for the OFS has been fixed at ₹352 per share, which is about 9.1% lower than the last closing price. The total issue size of the offer could go up to ₹3,088 crore (around $326 million).
The base size of the OFS is set at 2% of the stake, valued at approximately ₹1,235 crore. In addition, there is a greenshoe option of 3% stake, which could fetch up to ₹1,853 crore if exercised.
The OFS will open first for non-retail investors on June 16. Retail investors will get their chance to participate the next day, on June 17.
This stake sale is part of the government’s broader plan to raise funds through divestment of public sector enterprises. For investors, the discounted floor price offers an attractive entry point into GIC, India’s leading reinsurance company.
In simple terms, the government is selling part of its shareholding in GIC at a reduced price, giving both institutional and retail investors an opportunity to buy into the company.
