The government will sell up to 5% stake in insurance company GIC through OFS

The government of India plans to sell up to 5% stake in General Insurance Corporation (GIC) through an offer for sale (OFS), the state-run insurer said on Monday.

Here are more details:

* ⁠OFS includes a base offer of up to 2% equity stake in GIC, with an option to sell an additional 3% if the issue is oversubscribed.

* The floor price has been set at ⁠352 Indian rupees per share ($3.72), implying a discount of about ⁠9.1% from the company’s last close on Monday.

* OFS will open for non-retail investors on June 16 and for retail investors on June 17.

* India plans to divest its 10% stake in the insurer to meet the market regulator’s minimum public shareholding standard, Reuters reported in 2024. Of this, the government has already sold 3.4% shareholding in September 2024.

* According to data compiled by LSEG, the government holds 82.4% stake in the insurer as of March 31.