GIC Shares Falls as OFS Opens for Retail Investors Today: Check Floor Price, Subscription & Other Key Details

The Government of India's Offer for Sale in General Insurance Corporation of India (GIC Re) has opened for retail investors today, Wednesday, June 17, after receiving an overwhelming response from institutional investors during the non-retail bidding window on June 16.

The Centre is divesting up to a 5% stake in GIC Re, India's largest reinsurance company, through a 2% base offer and a 3% greenshoe option. The stake sale is expected to raise around Rs. 3,087.74 crore, making it one of the government's key disinvestment initiatives this financial year.

GIC Re OFS Details

The GIC Re OFS is being offered at a floor price of Rs. 352 per share, representing an 8.63% discount to the company's previous closing price of Rs. 385.25 on the NSE. After the robust institutional demand, the government exercised the entire greenshoe option, increasing the total offer size to 8,77,20,000 equity shares, equivalent to 5% of GIC Re's paid-up equity capital.

As per the OFS structure, 10% of the offer, or 87,72,000 shares, has been reserved for retail investors, who can place their bids through stock exchanges during today's trading session. Eligible GIC Re employees are also allowed to participate in the offer.

GIC Re Share Price Today

GIC Re shares were trading volatile on Wednesday as the OFS entered its retail phase. At the time of writing, GIC Re shares were trading at Rs. 354.30, up 1.14% from the previous close. Earlier in the session, the stock slipped to an intraday low of Rs. 346.50, briefly trading below the OFS floor price before recovering.

Strong Demand Greenshoe Exercise

The non-retail investor portion of the OFS received an overwhelming response. Exchange data showed that institutional investors placed bids for 11,73,76,058 shares, against the allocated quota of 3,15,79,200 shares, translating into a subscription of approximately 371.69%. The indicative bid price stood at ₹352.92 per share.

After the strong response, GIC Re informed the NSE and BSE that the promoter had decided to exercise the oversubscription (greenshoe) option for an additional 5,26,32,000 equity shares, taking the total offer size to the full 5% stake.

GIC Retail Subscription Update

Retail investors began bidding on June 17. According to the latest exchange data, bids for 12,899 shares had been received from retail investors, representing 0.37% of the retail quota of 35,08,800 shares at the time of reporting. Subscription numbers are expected to increase as trading progresses throughout the day.