Govt to sell up to 5% stake in insurer GIC via OFS

The Indian government plans to sell up to a 5% stake in General Insurance Corporation (GIC) via an offer for sale (OFS), the state-run insurer said on Monday.

Here are more ‌details:

* The ⁠OFS ⁠includes a base offer of up ​to a 2% equity stake in GIC, with an ​option to sell an additional 3% if the issue is oversubscribed.


* The ​floor price is set ⁠at 352 ‌Indian rupees per share ($3.72), ​implying ​a discount of about ⁠9.1% to the company's last close on Monday.

* ​The OFS opens for non-retail ​investors on June 16 and for retail investors on June 17.

* India plans to offload 10% of its stake in the insurer ‌in tranches to meet the market regulator's minimum public shareholding norm, Reuters reported in 2024. ⁠Of this, the government already sold a 3.4% shareholding in September 2024.

* The government ​holds 82.4% in the insurer as of March 31, according to data compiled by LSEG.