Pursuant to the OFS, the government decided to exercise the put option and sell an additional 3.39% stake, bringing the total size of the offer to 6.78%.
The government is proposing to sell up to 3.39% of the capital on 4 September to non-retail investors.
At an offer price of Rs 395 per share, the share sale would fetch around Rs 4,700 crore to the government exchequer.
“Retail investors and employees of GIC can submit bids on Thursday. The government will part with 3.39% of the equity and an additional 3.39% as call option,” DIPAM Secretary Tuhin Kanta Pandey said. SFO regulations state that only retail investors and employees will be allowed to submit their bids on Thursday. However, those non-retail investors who have submitted their bids on Wednesday and have chosen to carry over their unallocated bids to the next day will also be allowed to revise their bids. As per the latest shareholding pattern, the government currently holds 85.78% of the shares in GIC Re. General Insurance Corp is engaged in the activities of assuming all or part of the risk associated with existing insurance policies originally underwritten by other insurance companies.
In the domestic market, the company offers reinsurance to direct general insurance companies in the Indian market. It offers various types of insurance such as fire, motor, aviation, engineering, health, agriculture, marine hull, marine cargo and life, among others.
Shares of General Insurance Corp closed 5.7 per cent lower at Rs 397.50 on NSE on Wednesday.
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