The issue will come with an additional green shoe option for another 59.5 million shares.
Floor price per share Rs. 395, which is about 6% lower than the current market price of GIC. This offer will cost around Rs. 4,701 crore is expected to be raised, which will support the government’s disinvestment strategy and help meet its fiscal targets.
OFS, the first significant stake sale in GIC since its IPO in October 2017, will open to investors Wednesday. This will help the government reduce its holding to comply with SEBI’s 25% public shareholding requirement.
In preparation for the OFS, the government, along with the Department of Investment and Public Asset Management (DIPAM) and GIC Re Management, has met with investors globally.
GIC Re, India’s only reinsurance company, is increasingly focusing on domestic business, which now accounts for 84% of its total portfolio. The company increased premiums by 36% during the first quarter to Rs. 12,589 crore has been seen. Profits rose 43% on lower claims costs and better underwriting performance. The company has also seen improvement in financial metrics, with a net worth of Rs. 32,984 crores to Rs. 38,635 crore, solvency margin rose to 3.36 against 2.88 and its expense claim ratio stood at 89.8% in Q1 FY24, down from 95% a year ago. Earlier
Shares of GIC rose 0.13% to Rs. was closed at 421 Tuesday On the BSE, the benchmark index fell 0.01%.
(You can now subscribe to our ETMarkets WhatsApp channel)