Govt completes 5% OFS in GIC Re, including 3% green-shoe option: DIPAM Sect
New Delhi, June 17
The Government of India has completed the divestment of its 5 per cent stake in General Insurance Corporation of India after the offer for sale closed with full subscription of both the base offer and the green-shoe option, according to the Department of Investment and Public Asset Management.
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.
— ANI
Reader Comments
Interesting to see the government pushing disinvestment again. GIC Re is a giant in the insurance sector, but I hope this doesn't dilute the public sector character too much. The oversubscription is a good sign for market confidence though. Let's see how the stock performs post-OFS.
Great move by DIPAM! The 3.72x subscription shows that even PSUs can attract strong investor interest when priced right. But I wish the government would also focus on improving the fundamentals of these companies, not just selling stakes. Chaar dhaam karein toh bhi kaam nahi hoga agar management weak ho. 😅
As a retail investor, I appreciate the chance to bid on these OFS. GIC Re has a strong moat in the reinsurance space. But the floor price at Rs 352 seems a bit high compared to its book value. I'll wait and watch—bidding blindly in OFS can be risky. Good to see the green-shoe option fully exercised though! 🏦
Happy to see the government continuing with disinvestment—this brings in more liquidity and market depth. But I hope we don't end up selling our crown jewels cheaply. GIC Re is a strategic asset. The 3% green-shoe option being fully taken up is a positive signal. Let's hope the retail quota also gets good response tomorrow.
Good to see the market responding positively to PSU divestment. GIC Re is a well-run company with a strong balance sheet. The
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.