Institutional Investors Put Up Rs 2,300 Crore for GIC Re OFS

Institutional investors bid around Rs 2,300 crore in the government's first disinvestment of the current fiscal, the offer for sale (OFS) of General Insurance Corporation (GIC Re). Despite a slow start, the issue was fully subscribed by the close of market hours. Retail investors can bid on Thursday.

Institutional investors on Wednesday committed around Rs 2,300 crore in the government's offer for sale (OFS) of General Insurance Corporation (GIC Re).

The first government disinvestment of the fiscal, the OFS saw sluggish activity but managed full subscription just before the market closed.

According to BSE data, non-retail investors bid for 5.81 crore shares, accounting for 108.49 per cent of the 5.35 crore shares reserved for them.

Retail investors will have the opportunity to bid on Thursday.

The indicative price for bids was Rs 395.11, leading institutional investors to commit around Rs 2,300 crore for Wednesday's bids for GIC Re shares.

The government aims to sell up to 5.95 crore equity shares, which equates to a 3.39 per cent stake in GIC Re, at a floor price of Rs 395 a share. A greenshoe option to retain an additional 3.39 per cent in case of oversubscription takes the total potential issue size to 6.78 per cent.

IDBI Capital Markets & Securities, SBI Cap Securities, BoB Capital Markets, and Elara Securities (India) Pvt Ltd served as selling brokers for the OFS.

GIC Re shares were trading at Rs 397.70, down 5.59 per cent from Tuesday's close on the BSE.

The government currently holds an 85.78 per cent stake in GIC Re, which was listed on bourses in October 2017, generating Rs 9,685 crore from its initial public offering (IPO).

(With inputs from agencies.)