
The government aims to raise ₹3,090 crore through a 5% stake sale in GIC Re at a floor price of ₹352, a 10% discount to Monday's close. The OFS opens June 16.
The government aims to raise roughly ₹3,090 crore by selling up to a 5% stake in General Insurance Corp. of India (GIC Re, NSE: GICRE). The floor price of ₹352 a share is nearly 10% below Monday's close of ₹387.25 on the NSE, GIC Re said in an exchange filing late Monday.
The offer-for-sale opens for non-retail investors on June 16. Retail investors and employees can bid on June 17. The base size is 35 million shares, or 2% of equity, worth ₹1,240 crore at the floor price. If demand holds, the government can sell another 52.6 million shares, bringing the total to 5% of the paid-up capital and the full ₹3,090 crore.
Sebi rules require all listed companies to have at least 25% public float. The government held 82.4% of GIC Re at the end of March. This stake sale reduces that holding by 5 percentage points, still far from the threshold. Further sales would be needed to comply fully, though no timeline has been set.
The OFS also feeds into the government's FY27 divestment target of ₹80,000 crore. So far this fiscal year, it has raised ₹18,533 crore from stake sales and asset monetisation, or about 23% of the full-year goal, data from the Department of Investment and Public Asset Management showed. That includes ₹12,166 crore from paring stakes in three state-owned companies: ₹2,266 crore from Central Bank of India, ₹5,542 crore from Coal India, and ₹4,357 crore from NHPC. Asset monetisation added ₹6,367 crore. Last week, the government collected another ₹1,263 crore from a 3% stake sale in NLC India.
A 10% discount on a PSU insurer is not unusual for an OFS. The subscription data will show whether institutional buyers step in at that level. Mutual funds and insurance companies get at least 25% of the non-retail portion reserved for them. Employees can buy up to 20,000 shares each, capped at ₹5 lakh per person.
IDBI Capital Markets, SBI CAP Securities, BOB Capital Markets, and Elara Securities are managing the deal. BOB Capital Markets will handle settlement for the government.
The OFS opens for non-retail investors on June 16. Retail investors can bid the following day.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.