GIC Re OFS: Government to offload nearly 7% stake; check floor price & other details

General Insurance Corporation of India (GIC Re) on Tuesday said that the Centre would collectively sell nearly 7 per cent stake in the company through the offer for sale (OFS) route. The government would divest 3.39 per cent equity with an additional 3.39 per cent stake as the green shoe option.

The OFS opens tomorrow (September 4) for non-retail investors. Retail investors and GIC Re employees can bid on September 5. The equity shares can be subscribed between 9:15 am and 3:30 pm on both days.

"We hereby notify you that the seller proposes to sell up to 5,95,12,000 equity shares of the face value of Rs 5 each of the company (representing 3.39 per cent of the total paid-up equity share capital of the company) (Base Offer Size), on September 4, 2024 (T day) (for non-retail investors only) and on September 5, 2024 (T+1 day) (for Retail investor, employees and non-retail investors, who chose to carry forward their un-allotted bids from T day) with notice an option to additionally sell 5,95,12,000 (3.39 per cent) equity shares forming part of the base offer size and the oversubscription will represent 11,90,24,000 (6.784 per cent) equity shares of the company, collectively," GIC Re stated in a BSE filing.

The floor price for the OFS would be Rs 395 per equity share, it added. Additionally, 50,000 equity shares (0.04 per cent of the offer shares) may be offered to eligible employees of the company. The state-run insurer also mentioned that employees may apply for equity shares amounting up to Rs 5,00,000.

This announcement came post-market hours today. Earlier in the day, GIC Re shares settled 0.13 per cent lower at Rs 421.25. As of June 2024, the government held 85.78 per cent stake in the PSU, which is the largest company engaged in the reinsurance business.