The shares of General Insurance Corporation of India (GIC) fell 3% after it opened 'Offer for Sale' (OFS) for retail investors on Wednesday.
The government's up to 5% stake sale in General Insurance Corporation of India (GIC) was subscribed over 3.72 times on Tuesday, with institutional investors putting in bids worth over Rs 4,000 crore. Non-retail investors put in bids for over 11.73 crore GIC shares or 3.72 times the base issue portion of 3.16 crore shares reserved for them, as per BSE data. At the indicative price of Rs 352.92, the bids are worth Rs 4,000 crore.
Through the two-day Offer for Sale (OFS) at a floor price of Rs 352/share, the government is divesting 2 per cent equity in GIC, with an additional 3 per cent as a green shoe option -- taking the total stake dilution to 5 per cent, which is equivalent to over 8.77 crore shares. The floor price was at a 9.36% discount over Monday's closing price. The government is looking to garner about Rs 3,000 crore from the OFS.
The government has already raised Rs 13,389 crore through stake sales in public sector units in the current fiscal. This includes Rs 5,542 crore from Coal India, Rs 4,357 crore from NHPC, Rs 2,266 crore from Central Bank of India and Rs 1,223 crore from NLC India. The government hopes to exceed the budgeted target of Rs 80,000 crore from PSU disinvestment and asset monetisation in the current fiscal.
General Insurance Corporation of India (GIC) Share Price Today
General Insurance Corporation of India Share Price Today
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The scrip fell as much as 3.26% to Rs 351.40 apiece on Wednesday at 10:38 a.m. This compares to a 0.38% rise in the NSE Nifty 50 Index.
It has fallen 7.45% in the last 12 months and 7.76% year-to-date. Total traded volume so far in the day stood at 0.78 times its 30-day average. The relative strength index was at 33.99.
Out of five analysts tracking the company, four maintain a 'buy' rating and one maintain a "sell" rating, according to Bloomberg data. The average 12-month consensus price target of Rs 463.80 implies an upside of 30.8%
ALSO READ: GIC's OFS Subscribed 3.72 Times, Institutional Investors Submit Bids Worth Rs 4,000 Crore
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