Institutional investors rush for GIC Re shares; issue subscribed nearly 4X on day 1

The subscription window for non-retail investors opened on Tuesday, while retail investors and employees will be able to place bids on Wednesday, June 17, 2026. Additionally, the government will exercise the full green shoe option.

DIPAM Secretary shared the development via X on Tuesday, adding "Offer for Sale in General Insurance Corporation of India received an enthusiastic response from the investors on day one and was oversubscribed 3.72 times. Government has decided to exercise the entire green shoe option. Retail investors and employees get to bid on Wednesday 17th June 2026."

As per the earlier update shared by DIPAM Secretary on X, the Government of India is divesting up to 5 per cent equity in GIC Re through the OFS route as part of its ongoing disinvestment programme.

The issue has a floor price of Rs 352 per share, as announced by the Department of Investment and Public Asset Management (DIPAM) on social media platform X.

"The government will sell up to 5.0 per cent stake in General Insurance Corporation of India (GIC) at a floor price of Rs 352 per share," it said.

The Secretary also added the "Offer for Sale in General Insurance Corporation of India (GIC) opens on 16.06.2026 (Tuesday) for Non-Retail investors. Retail investors and Employees of GIC can bid on 17.06.2026 (Wednesday)."

Providing details of the stake sale, the Secretary said, "The government will divest 2.0 per cent equity with an additional 3.0 per cent as a green shoe option."

The OFS is part of the government's broader disinvestment and public asset monetisation programme aimed at improving public shareholding in central public sector enterprises while mobilising resources for the exchequer.

In recent months, the Centre has successfully completed OFS transactions in companies such as Coal India Ltd, NHPC Ltd and Central Bank of India, which saw strong participation and helped improve liquidity and retail participation in PSU stocks. (ANI)