GIC OFS subscribed 3.72x, institutional investors put in bids worth `4,000 crore

PTI

New Delhi

The government's up to 5% stake sale in General Insurance Corporation of India (GIC) was subscribed over 3.72 times on Tuesday, with institutional investors putting in bids worth over ₹4,000 crore.

Non-retail investors put in bids for over 11.73 crore GIC shares against the base issue portion of 3.16 crore shares reserved for them, according to BSE data. At the indicative price of ₹352.92, the bids are valued at over ₹4,000 crore. 

"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," DIPAM Secretary Arunish Chawla said on X. 

Retail investors will get to bid in the Offer for Sale (OFS) on Wednesday. 

Through the two-day OFS at a floor price of ₹352 per share, the government is divesting 2% equity in GIC, with an additional 3% as a green shoe option, taking the total stake dilution to 5%, which is equivalent to over 8.77 crore shares. The floor price was at a 9.36% discount over Monday's closing price, and the government is looking to garner about ₹3,000 crore from the divestment. GIC shares closed 7.65% down at ₹358.65 on the BSE.