The Indian government plans to divest up to 5% of its stake in General Insurance Corporation (GIC) through an offer for sale. The OFS opens at a floor price of Rs 352 per share, a 9% discount to the previous closing price, aiming to raise over Rs 3,087 crore.
This stake sale is part of the Indian government's ongoing disinvestment program, aiming to raise capital and meet public shareholding norms for state-owned enterprises. The discount offered may attract investors, but the decline in GIC's share price indicates potential market concerns.
The Indian government is set to divest up to a 5% stake in the state-run insurer General Insurance Corporation (GIC) through an offer for sale (OFS). The offering includes a base stake of 2%, with the flexibility to sell an additional 3% if demand is strong. The floor price for the sale has been established at 352 Indian rupees per share, which represents a discount of approximately 9.1% compared to the insurer's closing price on Monday. At this floor price, the total offer size is valued at over Rs 3,087.74 crore. The sale process will commence with non-retail investors on June 16, followed by retail investors and employees on June 17. This stake sale is part of the government's broader disinvestment strategy, which has recently seen divestments in other public sector undertakings like Coal India and NHPC. The government had previously planned to sell 10% of its stake in GIC in tranches to meet minimum public shareholding norms, having already sold 3.4% in September 2024. As of March 31, 2026, the President of India held over 82% of GIC, Life Insurance Corporation of India held around 10%, and mutual funds held about 1.5%.