GIC Re OFS: Government to sell 6.8% stake

The Indian government is set to divest a significant portion of its stake in General Insurance Corporation (GIC Re) through an offer for sale (OFS).

Key details of the OFS

• Offer size: The government plans to sell up to 6.78% of its stake in GIC Re, representing over 11.90 crore shares.
• Floor price: The floor price for the OFS has been set at ₹395 per share, which is at a discount of 6.23% compared to the closing price on September 3rd.
• Offer dates: The OFS will open on Wednesday, September 4th, for institutional investors. Retail investors will have the opportunity to participate on Thursday.
• Green shoe option: If investors show strong demand, the government can sell an additional 3.39% of its stake.

Expected proceeds

At the floor price of ₹395 per share, the share sale is estimated to fetch the government approximately ₹4,700 crore.

GIC Re's performance and outlook

GIC Re is a leading player in the international reinsurance sector and is 100% owned by the Indian government. The company was listed on the bourses in October 2017 and raised ₹9,685 crore through its initial public offering (IPO), offering investors an opportunity to participate in the share market investment of a government-backed company.

Investors interested in participating in the GIC Re OFS should carefully consider the offer's terms and conditions, as well as the company's financial performance and future prospects.