Government On Wednesday, it sold its 5 percent stake in public sector reinsurance company General Insurance Corporation of India (GIC-Re). The government has sold this stake through offer for sale (OFS). The sale offer of General Insurance Corporation of India received overwhelming support from investors. The government is expected to get approximately Rs 3,000 crore from this deal. With this big and successful deal, so far in the current financial year, the government has received an amount of about Rs 16,000 crore from disinvestment in 5 public sector companies.
GIC-Re’s OFS was open for retail investors on Wednesday
On Tuesday, non-retail investors placed bids worth about Rs 4,000 crore for this OFS. This OFS was opened for retail investors on Wednesday. Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said the OFS for stake sale in General Insurance Corporation of India received an encouraging response from investors. He said that under the OFS, both the base issue and the green-shoe option received full subscription.
Government sold shares of government company at the price of Rs 352 per share
Let us tell you that the government had offered this issue in two different phases at the base price of Rs 352 per share to sell stake in General Insurance Corporation of India. This included a 2 per cent stake along with a green-shoe option for an additional 3 per cent stake. Overall, this was 5 percent stake, which has been sold. The floor price announced for the OFS was 9.36 per cent lower than Monday’s closing price.
GIC-Re shares closed at Rs 358.65 with a fall of 7.65 percent on Wednesday.
Meanwhile, shares of GIC closed 7.65 per cent lower at Rs 358.65 on the BSE on Wednesday. Earlier in the current financial year, the government had raised Rs 13,389 crore from stake sale in public sector undertakings. These include Coal India, NHPC, Central Bank of India and NLC India. The government has set a target of raising more than Rs 80,000 crore in the financial year 2026-27 from disinvestment of public sector undertakings.
