The government of India is initiating a significant Offer for Sale (OFS) for shares of General Insurance Corporation of India (GIC RE) today, June 16, 2026. The move aims to divest a portion of its stake in the state-owned reinsurer, with a target to raise ₹3,087.74 crore from the transaction.
OFS Details and Discounted Pricing
The OFS for non-retail investors opens today at a floor price of ₹352 per share. This price offers a substantial discount of 8.63% compared to GIC RE's closing price of ₹385.25 on Monday. The initial offering comprises a base size of 2% equity, equivalent to up to 35,088,000 shares. Should there be sufficient demand, the government retains the option to sell an additional 3% of the company's total paid-up equity share capital, amounting to up to 52,632,000 shares.
Government's Stake and Regulatory Compliance
As of the end of the March quarter, the government held a commanding 82.40% stake in GIC RE, owning 1,445,567,615 shares. This divestment aligns with regulatory requirements for listed companies to maintain a minimum public shareholding of 25%, meaning promoter holding cannot exceed 75%. The GIC RE OFS is part of a broader government strategy that has seen divestments in other public sector undertakings like NLC India, NHPC India Ltd, Central Bank of India, and Coal India Ltd, raising a cumulative ₹13,389.42 crore in the first three months of FY27.
Bidding Process and Employee Offer
Today, June 16, 2026, is designated as 'T day,' exclusively for non-retail investors to place their bids. These investors have the option to carry forward any un-allotted bids to 'T+1 day' for potential allocation in the unsubscribed retail portion. On 'T+1 day,' non-retail investors who chose to carry forward their bids will also be permitted to revise them. A separate provision has been made for eligible GIC RE employees, who will be offered up to 20,000 shares under the OFS guidelines.
The GIC RE scrip has remained largely flat over the past year, making this OFS a closely watched event in the market.