General Insurance OFS subscribed 3.72 times, institutional investors put in Rs 4,000 crore bids

New Delhi: The Government's up to 5 percent stake sale in General Insurance Corporation of India (GIC) was subscribed over 3.72 times on Tuesday, with institutional investors putting in bids worth over Rs 4,000 crore.

Non-retail investors put in bids for over 11.73 crore GIC shares or 3.72 times the base issue portion of 3.16 crore shares reserved for them, as per BSE data.

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At the indicative price of Rs 352.92, the bids are worth Rs 4,000 crore.

"Offer for Sale in General Insurance Corporation of India received an enthusiastic response from the investors on day one and was oversubscribed 3.72 times. Government has decided to exercise the entire green shoe option," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said on X.

Retail investors will get to bid in the OFS on Wednesday.

Through the two-day Offer for Sale (OFS) at a floor price of Rs 352/share, the government is divesting 2 percent equity in GIC, with an additional 3 percent as a green shoe option, taking the total stake dilution to 5 percent, which is equivalent to over 8.77 crore shares.

The floor price was at a 9.36 percent discount over Monday's closing price. The government is looking to garner about Rs 3,000 crore from the OFS.

GIC shares closed 7.65 percent down at Rs 358.65 on the BSE.

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The government has already raised Rs 13,389 crore through stake sales in public sector units in the current fiscal. This includes Rs 5,542 crore from Coal India, Rs 4,357 crore from NHPC, Rs 2,266 crore from Central Bank of India and Rs 1,223 crore from NLC India.

The government hopes to exceed the budgeted target of Rs 80,000 crore from PSU disinvestment and asset monetisation in the current fiscal.

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