Institutional investors rush for GIC Re shares; issue subscribed nearly 4X on day 1
New Delhi, June 16
The General Insurance Corporation of India witnessed strong investor demand on the first day of its offer for sale, with the issue oversubscribed 3.72 times, reflecting robust participation from institutional investors.
The subscription window for non-retail investors opened on Tuesday, while retail investors and employees will be able to place bids on Wednesday, June 17, 2026. Additionally, the government will exercise the full green shoe option.
DIPAM Secretary shared the development via X on Tuesday, adding "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."
As per the earlier update shared by DIPAM Secretary on X, the Government of India is divesting up to 5 per cent equity in GIC Re through the OFS route as part of its ongoing disinvestment programme.
The issue has a floor price of Rs 352 per share, as announced by the Department of Investment and Public Asset Management (DIPAM) on social media platform X.
"The government will sell up to 5.0 per cent stake in General Insurance Corporation of India (GIC) at a floor price of Rs 352 per share," it said.
The Secretary also added the "Offer for Sale in General Insurance Corporation of India (GIC) opens on 16.06.2026 (Tuesday) for Non-Retail investors. Retail investors and Employees of GIC can bid on 17.06.2026 (Wednesday)."
Providing details of the stake sale, the Secretary said, "The government will divest 2.0 per cent equity with an additional 3.0 per cent as a green shoe option."
The OFS is part of the government's broader disinvestment and public asset monetisation programme aimed at improving public shareholding in central public sector enterprises while mobilising resources for the exchequer.
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
As an NRI looking to invest back home, this looks promising. The green shoe option being fully exercised is a strong signal. But I wish the retail portion was opened simultaneously with institutional investors. Somehow feels like we retail folks are always last in line. 😕
Good move by the government to divest at a reasonable floor price of Rs 352. But I hope this isn't another case where PSUs are sold cheap and then private players benefit. GIC Re is a national asset with excellent reinsurance business. At least they're keeping majority stake with government. Need more transparency on how proceeds will be used - infrastructure or fiscal deficit management?
My father worked in GIC for 25 years. He always said the company has excellent underwriting standards and low claim ratios compared to private insurers. Happy to see institutional investors recognizing its value. Planning to bid tomorrow as a retail investor. Fingers crossed! 🤞
What's with the staggered timeline? Institutional investors get first dibs and by the time retail opens, price might already be priced in. This is typical of government OFS - always favoring big players. The floor price seems reasonable but let's see actual listing performance. Previous PSU OFS like Coal India did well, hope same for GIC Re. #Disinvestment #PSU
Great to see disinvestment picking up pace! But the government should also focus on improving operational efficiency in PSUs before selling stakes. GIC Re is doing well but many others need restructuring. 3.72X subscription shows there's appetite for quality PSUs at right prices
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