Shares of General Insurance Corporation of India (GIC Re) are experiencing significant market attention as the Indian government prepares to divest up to 6.78% of its stake through an offer for sale (OFS) on September 4 and 5, 2024. The floor price for this sale is set at ₹395 per share, representing a discount of approximately 6% from the stock’s closing price of ₹421.25 on September 3.
The OFS will allow non-retail investors to participate on the first day, while retail investors and GIC Re employees can place their bids on the following day. The government aims to sell around 5.95 crore equity shares, with an option to sell an additional 5.95 crore shares if the offer is oversubscribed, bringing the total potential stake sale to approximately 11.90 crore shares or 6.78% of the company’s equity.
As of 9:33 AM on September 4, GIC Re’s shares were trading at ₹402.80, down ₹18.85 or 4.47% from the previous day, reflecting market reactions to the upcoming stake sale. This divestment is notable as it marks the first stake sale since the company’s listing in 2017, with the government currently holding an 85.78% stake in the PSU insurer.
