“Retail investors and GIC employees can bid on Thursday. The government will divest 3.39 per cent equity with an additional 3.39 per cent as green shoe option,” Secretary, Department of Investment and Public Asset Management, posted on social media platform X
New Delhi: The government is set to hit the street with the disinvestment plan of GIC Re, the largest reinsurer in the country, in form of a Rs 4,701 offer- for- sale(OFS) on Wednesday.
The government , which is holding 85.78 per cent in GIC Re plans to dilute around 7 per cent of its stake through OFS in the company.
The floor price of OFS will be priced at Rs 395 per share which is almost 6 per cent discount to the current market price(CMP) of GIC Re share and has seen significant recovery in recent times.
The stake sale will begin on Wednesday for non-retail investors.
“Retail investors and GIC employees can bid on Thursday. The government will divest 3.39 per cent equity with an additional 3.39 per cent as green shoe option,” Secretary, Department of Investment and Public Asset Management, posted on social media platform X.
“`Work is going on at the Ministry of Finance. Yes, most probably the issue will be out by tomorrow,’’ said GIC Re officials.
The issue will be 3.39 per cent of paid up equity with a green shoe option of another 3.39 per cent.
Sources point out that there will be 5.95 crore of GIC Re shares with green shoe option of 5.95 crore shares, which will be available for investors to subscribe.
Earlier, N Ramaswamy, CMD, GIC Re had said the reinsurer, which is now the 10th global largest player, will focus of profitability in its business by adequately pricing its products.
Analysts said the OFS of GIC Re will help more retail shareholders buying the shares and boost its liquidity in the market.
The government had raised Rs 11,370 crore in October 2017 by selling its 14.22 per cent stake in GIC Re That was India’s second biggest IPO ever after Coal India’s Rs 15,200 crore issue in October 2008.