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Informist, Monday, Jun. 15, 2026

 

--Govt to sell up to 5% stake in GIC via OFS Tue-Wed 

 

MUMBAI – The government will sell up to 5% stake in state-owned General Insurance Corp. of India through an offer for sale starting Tuesday, the insurance company informed exchanges Monday. The government has set the floor price for the sale at INR 352 per share, a discount of 9% to the stock's closing price Monday. The government's divestment proposal for GIC comprises a base issue size of 2% and a greenshoe option of 3%.

 

Non-retail investors can submit their bids for the company's stock on Tuesday, while bids from retail investors, company employees, and unallotted non-retail bids will be on Wednesday.

 

The government will offer up to 35.09 million shares of the company, representing 2.0% of the paid-up equity shares initially. The government will have the option to offer an additional 52.63 million shares, representing 3.0% of the capital on oversubscription, the company said.

 

A minimum of 25% of the shares on offer will be reserved for mutual funds and insurance companies. The retail category will have 10% of the shares reserved for bidding.

 

The government currently holds 82.4% stake in GIC, or 1.45 billion shares of the company's 1.75 billion fully paid-up equity shares. If the government exercises the greenshoe option and sells a 5% stake in the company, it could raise up to INR 30.88 billion at the current floor price. In the Budget for 2026-27 (Apr-Mar), the government set a target of INR 800 billion from miscellaneous capital receipts, including divestment proceeds.

 

For the quarter ended March, General Insurance Corp. reported a net profit of INR 22.54 billion on a total income of INR 121.60 billion. Monday, shares of the company ended 2.1% higher at INR 387.25 on the National Stock Exchange.  End

 

Reported by Eshitva Prakash

Edited by Saji George Titus

 

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