Government to Dilute 6.78% Stake in General Insurance Corporation

The government will dilute up to 6.78% stake in General Insurance Corporation (GIC Re) at a floor price of Rs 395 per share through an Offer For Sale (OFS). The share sale, aimed at raising approximately Rs 4,700 crore, opens for institutional investors on Wednesday and for retail investors on Thursday.

The government is set to dilute up to 6.78% stake in the General Insurance Corporation (GIC Re) with a floor price of Rs 395 per share.

The Offer For Sale (OFS) for over 11.90 crore shares or a 6.78% stake will open on Wednesday for institutional investors, while retail investors can bid on Thursday.

At a floor price of Rs 395 per share, this share sale is expected to generate around Rs 4,700 crore for the exchequer. Meanwhile, the shares of GIC Re closed at Rs 421.25 on the BSE, down by 0.13% from the previous close. The floor price is set at a 6.23% discount to Tuesday's closing price on the BSE.

DIPAM Secretary Tuhin Kanta Pandey announced via a post on X that the offer for sale in GIC Re opens for non-retail investors on Wednesday. Retail investors and GIC Re employees can bid on Thursday. The government plans to divest 3.39% equity, with an additional 3.39% as a greenshoe option.

(With inputs from agencies.)