New Delhi: The government will dilute up to 6.78 percent stake in General Insurance Corporation (GIC Re) at a floor price of Rs 395 per share.
The offer for sale (OFS) for over 11.90 crore shares or 6.78 per cent stake will open on Wednesday for institutional investors. Retail investors will get to bid in the share sale offer on Thursday.
At the floor price of Rs 395 a share, the share sale would fetch about Rs 4,700 crore to the exchequer.
Shares of GIC Re closed at Rs 421.25, down 0.13 percent over previous close on the BSE.
The floor price is at a discount of 6.23 percent over Tuesday's closing price on BSE.
"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% equity with an additional 3.39% as green shoe option," DIPAM Secretary Tuhin Kanta Pandey said in a post on X.
As per the OFS, the government proposes to sell up to 5,95,12,000 equity shares (representing 3.39 per cent) on September 4, 2024 for non-retail investors only and on September 5, 2024 for retail investors. The Government could decide to exercise the greenshoe option and sell an additional 3.39 per cent stake taking the total share sale to 11.90 crore shares or 6.78 percent.
The government currently holds 85.78 per cent stake in GIC Re.
The GIC Re got listed on the bourses in October 2017. The government garnered Rs 9,685 crore from the initial public offering (IPO).
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