(BS)
The Union Finance Ministry will dilute a 6.78 per cent stake in public sector reinsurance company General Insurance Corporation of India (GIC) Re to garner around Rs 4,700 crore. The stake sale, for the first time since the listing of the reinsurance company in 2017 through the offer for sale (OFS) route, will begin on Wednesday.
“Offer for sale in General Insurance Corporation of India (GIC) opens tomorrow for non-retail investors. Retail investors and employees of GIC can bid on Thursday. Government will divest 3.39 per cent equity with an additional 3.39 per cent as green shoe option,” secretary, Department of Investment and Public Asset Management (DIPAM) posted on social media platform X.
The floor price for the OFS is expected to be set at approximately Rs 395 per share, which represents an estimated 6 per cent discount compared to the current market price (CMP). On Tuesday, the share price of GIC Re ended at Rs 420.8 after declining 1.4 per cent. The government currently owns an 85.78 per cent share in GIC Re. This action mirrors a strategy used during LIC’s initial public offering (IPO), where the government divested 3.5 per cent of its stake and intended to sell an additional 1.5 per cent to support the insurer’s inclusion in index funds.
