Shares of General Insurance Corporation of India (GIC) fell after the opening bell on Tuesday, June 16 as the government announced its plan to sell around 5% stake in the public sector unit via an Offer for Sale (OFS).
GIC share price dropped as much as 5.49% to Rs 366 apiece. The scrip was trading 5.26% lower by 9:37 am, while the benchmark Nifty 50 index was up 0.33%.
GIC informed the exhanges on Monday, June 16 that the government, under the OFS plan will initially offer a 2% stake as the base issue, with an option to sell an additional 3% stake in the event of strong investor demand.
The OFS plan is part of the Centre's broader disinvestment programme aimed at enhancing public shareholding and mobilising resources through the capital markets.
The offer will open for institutional and non-retail investors on June 16, while retail investors will be able to bid on June 17. The government has fixed the floor price for the share sale at Rs 352 per share.
India's largest reinsurer, GIC plays a critical role in the country's insurance ecosystem by providing reinsurance support to domestic insurers and maintaining a presence in several international markets.
The proposed stake sale is expected to improve liquidity in the stock and help the government move closer to meeting minimum public shareholding norms. As of the financial year ended March 31, 2026, the government held 82.4% stake in the company.
The floor price of Rs 352 will serve as the minimum bid price for investors participating in the OFS.
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