GIC Re OFS sells up to 5% stake at Rs 352 as shares fall

Shares of Cochin Shipyard declined nearly 2% on June 22 after reports suggested that the government is likely to soon initiate an Offer for Sale (OFS) in the company. A CNBC-TV18 report indicated that the move is part of the government’s broader strategy to raise funds through disinvestment in public sector undertakings (PSUs).According to the report, the proposed OFS in Cochin Shipyard may be offered at a discount of around 6–8% compared to the prevailing market price. Following the news, Cochin Shipyard shares trimmed losses and were trading about 1% lower at ₹1,444 per share.Government data shows that it currently holds a 67.91% stake in the defence shipbuilding company. The potential stake sale aligns with the Centre’s ongoing efforts to meet its disinvestment targets for the financial year.So far in FY27, the government has raised over ₹16,000 crore through OFS transactions in various PSU companies. This includes multiple divestment initiatives across sectors as part of its asset monetisation strategy.NSE Files DRHP For ₹30,000 Crore IPO; Stakeholders To Divest 6% In Complete OFS Earlier in the week, the government successfully sold a 5% stake in General Insurance Corporation of India (GIC Re) through an Offer for Sale that received strong investor demand. The transaction is expected to fetch around ₹3,000 crore for the exchequer, contributing to the overall PSU divestment proceeds for the fiscal year.According to DIPAM Secretary Arunish Chawla, the GIC Re OFS saw full subscription, including both base and green-shoe options. Non-retail investors had already oversubscribed the issue before it opened to retail participants.GIC Re Shares Fall Over 6% As Govt Launches Discounted OFS The government had offered shares at a floor price of ₹352, which represented a discount of about 9.36% to the previous closing price. GIC Re shares ended lower following the pricing announcement.Overall, PSU disinvestment has already yielded ₹13,389 crore in the current fiscal through stake sales in companies including Coal India, NHPC, Central Bank of India, and NLC India. The government has set an ambitious target of ₹80,000 crore from PSU stake sales and asset monetisation in FY2026–27 and expects to exceed it through a strong pipeline of future offerings.

General Insurance Corporation of India shares fell 3% after opening an Offer for Sale for retail investors, with institutional bids exceeding 3.7 times the base issue portion.

Mumbai: Analysts have advised retail investors to avoid government's offer for sale in General Insurance Corp of India (GIC Re), citing concerns over profitability and sector headwinds.The Centre wants to sell up to 5% stake in GIC, including a 2% base offer with a greenshoe option to sell an additional 3% in case of oversubscription.The non-retail portion was subscribed 3.72 times on Tuesday, prompting the government to exercise the greenshoe option to sell an additional 3% stake. The retail portion is set to open for bids Wednesday."We advise retail investors to avoid subscribing to the issue as, fundamentally, the company is still struggling to deliver operational profit, with a FY26 combined ratio of 106%, and is relying heavily on its investment portfolio (around ₹1.5 lakh crore as of FY26) for profits," said Sunny Agrawal, head - fundamental research, SBI Securities.131783658Agrawal added that while the combined ratio has improved from 109% in FY23 to 106% in FY26, with likely further improvement in FY27E, the reinsurance industry continues to face pricing pressure and rising competition. On the valuation front, the business is available at FY26E Price to book value of 1.2x (excluding fair value changes) with RoE of 16.4%.The floor price for the share sale is at ₹352 per share, a discount of about 8.63% to Monday's closing price of ₹385.25. The stock closed 8% down at ₹356.40.

Shares of state-owned reinsurer General Insurance Corporation of India (GIC Re) declined sharply on Tuesday, falling over 6% after the government launched an offer for sale (OFS) to divest up to a 5% stake in the company at a discounted price.The stock dropped 6.54% to an intraday low of ₹363.45 on the NSE. It opened 4.14% lower, ending its recent two-day winning streak as selling pressure intensified following the OFS announcement.The government opened the OFS at a floor price of ₹352 per share, which represents a discount of about 9.10% compared to the previous closing price of ₹387.25. The lower pricing led to immediate weakness in the stock as investors reacted to the supply overhang.According to an exchange filing by GIC Re, the government plans to sell up to 3.51 crore shares, representing a 2% equity stake in the base offer for non-retail investors on June 16. The divestment is part of a broader disinvestment strategy aimed at reducing the government’s stake in public sector enterprises.Offer for Sale of equity in General Insurance Corporation of India (GIC) opens tomorrow for non-retail investors. Retail investors can bid on 17.06.2026. Government offers to disinvest 2.0% equity in the GIC with an additional 3.0% as green-shoe option. pic.twitter.com/xTMXjAUm3k— Secretary, DIPAM (@SecyDIPAM) June 15, 2026 DIPAM Secretary confirmed on social media platform X that the government will divest 2% equity initially, with an additional 3% available through a green shoe option, taking the total potential stake sale to 5%.The OFS structure also includes flexibility for an additional oversubscription option of 5.26 crore shares, equivalent to another 3% stake in the company.For retail investors and employees, the bidding window opens on June 17, following the initial non-retail tranche on June 16.The government’s move is part of its ongoing effort to monetise holdings in state-run companies, improve market liquidity, and broaden public ownership. However, in the short term, such discounted stake sales often lead to volatility in the stock price, as seen in GIC Re’s sharp decline following the announcement.

Shares of General Insurance Corporation of India (GIC) declined 6% to their day's low of Rs 366 on the BSE on Tuesday as the government’s offer for sale (OFS) to divest up to 5% stake in the state-run insurer opens today at a floor price of Rs 352 apiece, implying a 9% discount to the stock’s previous closing price.In an exchange filing released on Monday, GIC announced that the government aims to sell up to 3.51 crore shares, representing a 2% equity stake, as part of the base offer which opens for non-retail investors today (June 16). The government can also exercise the oversubscription option to additionally sell another 5.26 crore shares, representing another 3% stake in the company for the OFS that opens for retail investors and employees on Wednesday (June 17).This collectively brings the total offer size to 8.77 crore shares, or a 5% equity stake in the general insurance company. At the floor price of Rs 352 per share, this would be worth more than Rs 3,087.74 crore.Also Read | Nilesh Shah bats for minimum qualifying criteria for F&O trading after Maharashtra man kills family, self over Rs 1.8 cr lossThe latest stake sale comes as the government recently ramped up its disinvestment efforts. Recently, the government offloaded some of its stake in Coal India, NHPC, NLC India and other PSU companies.The government planned to sell 10% of its stake in the insurer ‌in tranches to meet the market regulator's minimum public shareholding norm, Reuters reported in 2024. ⁠Of this, the government already sold a 3.4% shareholding in September 2024.GIC shareholding patternThe President of India owned more than 82% stake in GIC as of March 31, 2026, according to data on the company’s shareholding pattern on NSE. Life Insurance Corporation of India (LIC) meanwhile held around 10% stake, while 22 mutual funds held around 1.5% stake. Around 2.07 lakh retail investors collectively owned a 1.4% stake in the company.GIC share priceGIC shares have fallen around 1% in one week but are up nearly 2% in 2026 so far. The shares of the company have rallied 103% in three years and 92% in five years.The company has a market capitalisation of more than Rs 67,588 crore. Also Read | M-Cap of Vedanta's split cos jumps 67% to Rs 3.5 lakh crore(With inputs from agencies)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

The government is set to divest up to 5% of its stake in General Insurance Corporation of India (GIC) via an offer for sale, opening for institutional investors on June 16. Priced at a floor of Rs 352 per share, this move could raise approximately Rs 3,000 crore. Retail investors can participate the following day.