GIC Re Offer For Sale: The government is going to sell its 6.784 percent stake in the country’s largest public sector reinsurance company General Insurance Corporation of India through an Offer for Sale. GIC’s Offer for Sale will open for applications on September 4 and 5. The floor price for the OFS has been fixed at Rs 395, which is 6.32 percent less than the closing price of Tuesday, September 3. The target is to raise a total of Rs 4701 crore through OFS. Retail investors will not be given any discount in this Offer for Sale.
In a regulatory filing with the stock exchanges, the General Insurance Corporation of India said that the government proposes to sell 5,95,12,000 equity shares with a face value of Rs 5, which is 3.39 per cent of the company’s paid-up equity share capital. Non-retail investors can apply for the General Insurance Corporation’s offer for sale on September 4, 2024. Retail investors, employees and non-retail investors who want to carry forward unallotted bids can apply on September 5. On oversubscription of the offer for sale, the government has the option to sell another 3.39 per cent stake, i.e. a total of 6.784 per cent stake is to be sold.
In the offer for sale of General Insurance Corporation, 50,000 equity shares, which is 0.04 per cent of the total offer, are being offered to the employees and employees can apply for shares worth up to Rs 5 lakh.
The floor price of GIC’s offer for sale has been fixed at Rs 395 per share. Earlier, in all the public sector listed companies’ offers for sale brought by the government, retail investors have been given a discount on the fixed floor price. But no discount has been given to retail investors in GIC’s OFS. Today, at the close of the market, GIC’s stock closed at Rs 421.65 with a decline of 0.13 percent. Investors will be able to bid on NSE and NSE from 9.15 am to 3.30 pm.
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