Slow Start for Government's Stake Sale in GIC Re
The government's sale of 3.39% stake in General Insurance Corporation (GIC Re) experienced a sluggish start, with bids from non-retail investors reaching full subscription just before market close. Institutional investors put in offers worth Rs 2,284 crore, while retail investors are set to bid next.
- Country:
- India
The government's offer for the sale of 5.95 crore shares, representing a 3.39 per cent stake in General Insurance Corporation (GIC Re), had a tepid beginning on Wednesday, achieving full subscription just moments before the market closed.
According to BSE data, non-retail investors had submitted bids for 5.78 crore shares by 3:20 pm, translating to 107.92 per cent of the 5.35 crore shares set aside for them.
Institutional investors submitted bids totaling Rs 2,284 crore for GIC Re shares based on an indicative price of Rs 395.03 each as of 3:20 pm on Thursday. Retail investors are scheduled to participate in the bidding on Thursday.
The government is offloading up to 5.95 crore equity shares, or a 3.39 per cent stake, in GIC Re at a floor price of Rs 395 per share. There is also a greenshoe option allowing the government to retain an oversubscription of up to an additional 3.39 per cent, potentially expanding the total issue size to 6.78 per cent.
The selling brokers for this Offer for Sale (OFS) included IDBI Capital Markets & Securities, SBI Cap Securities, BoB Capital Markets, and Elara Securities (India) Pvt Ltd.
On the BSE, GIC Re shares traded at Rs 397.80, down 5.57 per cent from Tuesday's close. The government currently holds an 85.78 per cent stake in GIC Re, which was listed on the bourses in October 2017, generating Rs 9,685 crore from its initial public offering (IPO).
(With inputs from agencies.)
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