Shares of General Insurance Corporation of India (GIC Re) are set to be in the spotlight on September 4 as the Indian government plans to divest nearly 7 percent of its stake in the company through an offer for sale (OFS). The government aims to sell a 3.39 percent equity stake, with an additional 3.39 percent available as a green shoe option.
The OFS opens today for non-retail investors, while retail investors and GIC Re employees can place their bids on September 5. The bidding will be open between 9:15 am and 3:30 pm on both days, with the floor price set at Rs 395 per share.
It would sell up to 5.95 crore equity shares with a face value of Rs 5 each, representing 3.39 per cent of GIC Re’s total paid-up equity share capital, to non-retail category on September 4. Sale would continue on September 5 for retail investors, employees and non-retail category that have chosen to carry forward un-allotted bids.
Furthermore, the OFS also has an oversubscription option to sell 5.95 crore more equity shares, which could take the total on offer to 11.90 crore shares or 6.784 percent of the firm’s equity.
Around 50,000 shares – 0.04 percent of the issue size- will be reserved for eligible employees. It said that eligible employees can apply for a minimum of one equity share and a maximum of equity shares worth up to Rs 5 lakh.
Government now holds 85.78 percent stake in GIC Re, the country’s largest reinsurer, as of June 30, 2024. Announcing the OFS, the announcement came after the market hours on September 3. Earlier during the day, shares of GIC Re rose 0.33 percent to close at Rs 420.80 on the National Stock Exchange (NSE). GIC Re’s stock has surged about 24 per cent this year against the 16 per cent rally in the Nifty. The stock is up 86 per cent in the last 12 months as against a 29 per cent rise in Nifty.
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Source: Moneycontrol
News Desk
