Sharing the outcome of the stake sale on social media platform X, DIPAM Secretary said, “Offer for Sale (OFS) in GIC Re closed with enthusiastic response from the investors. Government of India has divested 5.0% per cent of its stake in GIC Re with full subscription of base and green-shoe offer. We thank all the investors for their participation.”
New Delhi:The Government of India has completed the divestment of its 5 per cent stake in General Insurance Corporation of India (GIC Re) after the offer for sale (OFS) closed with full subscription of both the base offer and the green-shoe option, according to the Department of Investment and Public Asset Management (DIPAM).
The successful closure follows strong investor demand for the issue, which was oversubscribed 3.72 times on the very first day of bidding by non-retail investors, prompting the government to exercise the entire green-shoe option.
Sharing the outcome of the stake sale on social media platform X, DIPAM Secretary said, “Offer for Sale (OFS) in GIC Re closed with enthusiastic response from the investors. Government of India has divested 5.0% per cent of its stake in GIC Re with full subscription of base and green-shoe offer. We thank all the investors for their participation.”
The successful closure of the OFS follows strong investor demand seen during the bidding process.
Earlier, the DIPAM Secretary had said that the government would sell up to 5 per cent stake in GIC Re through the OFS route at a floor price of Rs 352 per share.
The government had initially offered to divest 2 per cent equity, along with an additional 3 per cent stake under the green-shoe option.
The issue had received a strong response from institutional investors on the first day itself, prompting the government to exercise the entire green-shoe option.
“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,” the Secretary had said earlier.
The OFS opened for non-retail investors on June 16, while retail investors and GIC Re employees were allowed to place bids on June 17.
The stake sale forms part of the Centre’s ongoing disinvestment programme aimed at improving public shareholding in central public sector enterprises and mobilising resources through capital market transactions.
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.