Government Garners Rs 2,300 Crore from GIC Re OFS

Institutional investors put in bids worth around Rs 2,300 crore for the government's sale of shares in General Insurance Corporation (GIC Re). The offer, targeting a stake of up to 6.78%, received positive response with non-retail subscriptions exceeding base size. Retail investors to bid on Thursday.

Institutional investors on Wednesday placed bids totaling approximately Rs 2,300 crore in the government's offer for sale (OFS) of equity shares in General Insurance Corporation (GIC Re).

''Offer for Sale in GIC got a positive response today from Non-Retail investors. Issue subscribed 1.08 times of base size. Govt has decided to exercise the green shoe option,'' stated DIPAM Secretary Tuhin Kanta Pandey in a post on X.

The government plans to sell up to 5.95 crore equity shares, or 3.39 percent stake, in GIC Re at Rs 395 per share. The OFS includes a green shoe option to retain an additional 3.39 percent over-subscription, increasing the issue size to 6.78 percent. By close of trading, non-retail investor bids totaled 5.81 crore shares, 108.49 percent of the shares reserved for them. Retail investors and employees will bid on Thursday.

IDBI Capital Markets & Securities, SBI Cap Securities, BoB Capital Markets, and Elara Securities (India) Pvt. Ltd acted as selling brokers for the OFS. The GIC Re shares dropped by 5.59 percent on the BSE to Rs 397.70. The government, which currently holds 85.78 percent stake in GIC Re, had raised Rs 9,685 crore from its IPO in October 2017.

(With inputs from agencies.)