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GIC Re Stake Sale: Government Sets ₹352 Floor Price for 5% OFS
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.
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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.