Business

Government to Sell 6.78% Stake in GIC Re at Rs 395/Share

Sep 3, 2024 1 min read

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The Indian government is set to sell up to a 6.78% stake in the General Insurance Corporation of India (GIC Re) through an Offer For Sale (OFS) route. The OFS is scheduled to open on September 4, 2024, for institutional investors and the following day for retail investors. The floor price has been set at Rs 395 per share, representing a 6% discount to the current market price, with the sale expected to generate approximately Rs 4,701 crore for the exchequer.

The government's current holding in GIC Re stands at 85.78%, and this sale is in compliance with the Minimum Public Shareholding (MPS) norms, which require the promoter to reduce their holding to no more than 75%. The OFS includes an option for an additional 3.39% stake, known as the green shoe option, making the total offer potentially larger. This marks the first time the government is diluting its stake in GIC Re since the company's listing in October 2017.

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