Shares of General Insurance Corporation of India (GIC) declined 4% to Rs 346 on the BSE on Wednesday as the government's offer for sale (OFS) to divest up to 5% stake in the state-run insurer opens for retail investors today at a floor price of Rs 352 apiece, implying a 2% discount to the stock’s previous closing price.
In an exchange filing released on Monday, GIC announced that the government aims to sell up to 3.51 crore shares, representing a 2% equity stake, as part of the base offer, which opened for non-retail investors on Tuesday (June 16). The government can also exercise the oversubscription option to additionally sell another 5.26 crore shares, representing another 3% stake in the company for the OFS that opens for retail investors and employees on Wednesday (June 17).
This collectively brings the total offer size to 8.77 crore shares, or a 5% equity stake in the general insurance company. At the floor price of Rs 352 per share, this would be worth more than Rs 3,087.74 crore.
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The offer for sale witnessed strong investor demand on the first day, with the issue being oversubscribed 3.72 times, reflecting robust participation from institutional investors. The government will exercise the full green shoe option.
