General Insurance Corporation of India (GIC RE) saw its shares decline by 3.38% on Wednesday, reaching a low of Rs 346.50 per share. This dip placed the stock below the Offer For Sale (OFS) floor price of Rs 352 per share set for the government's stake sale.
Strong Non-Retail Demand, Weak Retail Interest in GIC RE OFS
The two-day OFS, which concludes today, June 17, 2026, has revealed a stark contrast in investor appetite. Non-retail investors demonstrated robust demand, oversubscribing their quota by 371.69%. They placed bids for 11,73,76,058 shares against an allocated quota of 3,15,79,200 shares, at an indicative price averaging Rs 352.92 per share.
Following this strong institutional interest, GIC RE informed the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) of the promoter's decision to exercise the over-subscription option for an additional 5,26,32,000 equity shares. This brings the total offer size to 8,77,20,000 equity shares, representing 5% of the company's total paid-up equity share capital.
Conversely, retail investor participation has been significantly subdued. As of reporting, only 12,899 shares were bid by retail investors, accounting for a mere 0.37% of their reserved quota of 35,08,800 shares. The retail category was allocated 10% of the initial offer size.
Government's Divestment Goals and Shareholding
The Indian government aims to raise approximately Rs 3,087.74 crore through this GIC RE OFS. The floor price of Rs 352 per share represented an 8.63% discount compared to GIC RE's closing price of Rs 385.25 on Monday.
At the end of March quarter, the government held a substantial 82.40% stake in GIC RE, totaling 1,44,55,67,615 shares. This OFS is a strategic move by the government to comply with the 25% minimum public shareholding (MPS) norms.
OFS Details and Bid Revisions
- A minimum of 25% of the offer shares were reserved for mutual funds and insurance companies within the non-retail category, provided valid bids were received at or above the floor price.
- GIC RE has also offered up to 20,000 shares to eligible employees, adhering to OFS guidelines.
- Non-retail investors who placed bids on day 'T' and opted to carry forward unallotted bids to day 'T+1' (Wednesday) were permitted to revise their bids as per OFS guidelines.