- The Government of India will sell up to 5% stake in GIC via an Offer for Sale
- The initial base issue is 2%, with an option to sell an additional 3% on demand
- The OFS opens for institutional investors on June 16 and retail on June 17
The Government of India on Monday announced plans to sell up to a 5% stake in General Insurance Corporation of India (GIC) via an Offer for Sale (OFS), according to a regulatory filing with the stock exchanges.
Under the proposed transaction, the government 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 move is part of the Centre's broader disinvestment programme aimed at enhancing public shareholding and mobilising resources through the capital markets.
The OFS 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.
GIC, India's largest reinsurer, 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.
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The floor price of Rs 352 will serve as the minimum bid price for investors participating in the OFS.
Market participants will closely watch subscription levels and institutional demand during the first day of the offering, as these are likely to determine whether the government exercises the additional 3% greenshoe option.
The transaction comes amid continued efforts by the government to unlock value from listed public sector enterprises while broadening investor participation in state-owned companies.
Further details regarding the issue size and final stake sale will emerge after the bidding process concludes.
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