GIC Re disinvestment: Shares in focus, here to know full details

Shares of General Insurance Corporation of India Ltd (GIC Re) are in focus as the government looks to sell up to 6.78 percent stake in the reinsurer through the offer for sale (OFS) route at a discount of 6 percent to Tuesday's closing price.

The government plans to sell 3.39 percent of its stake in the state-owned reinsurance company, with the option to sell an additional 3.39 percent. The offer price is set at Rs 395 per share, which is a 6.23 percent discount to Tuesday's closing price.

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The President of India, acting through and represented by the Ministry of Finance, informed stock exchanges about an announcement for OFS of up to 5,95,12,000 equity shares of face value of Rs 5 each of the company.

Only non-retail investors can bid today. Retail investors, employees, and non-retail investors, who choose to carry forward their un-allotted bids from T day, can bid on Thursday.

In the event of oversubscription, the government can additionally sell 5,95,12,000 (3.39 percent) equity shares of the company. In that case, the base offer size and the oversubscription option will represent 11,90,24,000 (6.784 per cent) equity shares of the company, collectively.

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"Additionally, 50,000 Equity Shares (equivalent to 0.04 % of the Offer Shares) may be offered to eligible employees of the Company, per the terms and conditions provided in the OFS Guidelines, subject to approval from the competent authority (the "Employee Offer"). The eligible employees may apply for Equity Shares amounting up to Rs. 500,000," GIC Re said.

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