GIC Re shares slide 4%; Govt to sell 7% stake via OFS

Shares of General Insurance Corporation of India (GIC Re) fell over 4% to an intra-day low of Rs 400.95 as the Indian government initiated the sale of nearly 7% of its stake in the company through an offer for sale (OFS) route. 

The government plans to divest 3.39% equity, with an additional 3.39% stake available as a green shoe.

The OFS opened today for non-retail investors, with retail investors and GIC Re employees allowed to bid on September 5. 

The equity shares can be subscribed between 9:15 AM and 3:30 PM on both days. The floor price for the OFS is set at RS 395 per equity share.

The seller intends to offer up to 5.95 crore equity shares, each with a face value of Rs 5, representing 3.39% of the company’s total paid-up equity share capital, on September 4, 2024 (T day) for non-retail investors. 

The sale will continue on September 5, 2024 (T+1 day) for retail investors, employees, and non-retail investors who choose to carry forward their unallotted bids from T day, according to a filing by GIC Re with the BSE.