GIC Re offer for sale over-subscribed

New Delhi: The government’s offer for sale of 5.95 crore shares or 3.39 per cent stake in General Insurance Corporation (GIC Re) saw a slow start on Wednesday with the issue getting fully subscribed just before the close of market hours. The Offer for Sale (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. Based on indicative price of Rs395.03 for the bids, institutional investors put Rs2,284 crore bids for GIC Re shares as of 3:20 pm on Thursday.

Retail investors will get to bid in the OFS on Thursday. The government is selling up to 5.95 crore equity shares or 3.39 per cent stake in GIC Re at a floor price of Rs395 a share. The OFS also has a Greenshoe option to allow government retain over-subscription of up to an additional 3.39 per cent, taking the total issue size to 6.78 per cent.