Government to Divest 6.78% Stake in GIC Re Through OFS

The central government plans to sell a total of 6.78% equity in General Insurance Corporation of India (GIC Re), including a 3.39% green shoe option. The sale opens for non-retail investors on Wednesday, followed by retail investors and employees on Thursday.

The central government aims to divest 3.39% equity, with an additional 3.39% as a green shoe option, in the General Insurance Corporation of India (GIC Re). The disinvestment process through the offer for sale (OFS) begins Wednesday for non-retail investors, according to a post by the Secretary of the Department of Investment and Public Asset Management on X.

Retail investors and employees of GIC Re will get their opportunity to bid on Thursday. An OFS allows promoters to sell shares, raising additional capital for the company.

In financial terms, the green shoe option enables the seller to offer more shares if demand exceeds expectations. General Insurance Corporation of India (GIC Re), a fully government-owned PSU, holds a notable position as the national reinsurer and a key international player in the reinsurance market. (ANI)

(With inputs from agencies.)