Based on indicative price of Rs 395.03 for the bids, institutional investors put Rs 2,284 crore bids for GIC Re shares as of 3:20 pm on Wednesday. Retail investors will get to bid in the OFS on Thursday
New Delhi: Institutional investors on Wednesday placed bids totaling approximately Rs 2,300 crore in the government’s offer for sale (OFS) of equity shares in General Insurance Corporation (GIC Re).
”Offer for Sale in GIC got a positive response today from Non-Retail investors. Issue subscribed 1.08 times of base size. Govt has decided to exercise the green shoe option,” stated DIPAM Secretary Tuhin Kanta Pandey in a post on X.
The government plans to sell up to 5.95 crore equity shares, or 3.39 percent stake, in GIC Re at Rs 395 per share.
Based on indicative price of Rs 395.03 for the bids, institutional investors put Rs 2,284 crore bids for GIC Re shares as of 3:20 pm on Thursday.The total size of the OFS is estimated at Rs 4,701 crore based on the aforementioned floor price.
The OFS includes a green shoe option to retain an additional 3.39 percent over-subscription, increasing the issue size to 6.78 percent.
By close of trading, non-retail investor bids totaled 5.81 crore shares, 108.49 percent of the shares reserved for them.
Retail investors and employees will bid on Thursday.
Market sources said the government’s offer for sale of 5.95 crore shares or 3.39 per cent stake in GIC Re saw a slow start on Wednesday with the issue getting fully subscribed just before the close of market hours.
The OFS received bids from non-retail investors for 5.78 crore shares as of 3.20 pm. This is 107.92 per cent of the 5.35 crore shares reserved for them, as per BSE data.
Retail investors will get to bid in the OFS on Thursday.
Non-retail investors who place bids on Wednesday and choose to carry forward their unallotted bids to the following day will be permitted to revise their bids.
Additionally, 50,000 equity shares, representing 0.04% of the offer, will be allocated to eligible employees of the company.
IDBI Capital Markets & Securities, SBI Cap Securities, BoB Capital Markets and Elara Securities (india) Pvt Ltd acted as selling brokers for the OFS.
Shares of GIC Re traded at Rs 397.80, down 5.57 per cent over Tuesday’s close on the BSE.
Shares of GIC RE have risen by 78.3% over the past year and by 29.3% year-to-date, although the stock has decreased by 1.75% in the last month
The government currently holds 85.78 per cent stake in GIC Re.
The GIC Re got listed on the bourses in October 2017. The government had garnered Rs 9,685 crore from the initial public offering (IPO).
The company is currently valued at Rs 69,825 crore.