GIC Re Shares Plunge on Government Share Sale

4 Sep 2024 , 11:17 AM

General Insurance Corporation (Re) of India shares slid 5.4% to a day’s low of Rs 398.60 today, the first day of the government’s sale of its 6.78% stake in the business through an offer for sale (OFS) at a floor price of Rs 395 per share.

The entire size of the OFS is anticipated to be Rs 4,701 crore based on the aforementioned floor price.

The issue went live today for non-retail investors, with up to 3.39% of the shares available. Retail investors and employees will be able to put bids on Thursday.

Non-retail investors who put bids on Wednesday and prefer to carry over their unallotted bids to the next day will be able to revise them.

The OFS is for 5.95 crore shares, with a green shoe option of the same number of shares. In addition, 50,000 equity shares, representing 0.04% of the offer, will be distributed to qualifying workers of the company.

Shares can be purchased during market hours, which are 9:15 a.m. to 3:30 p.m. on both days. The government is providing shares at a 6.13% discount from Tuesday’s closing price. The company informed the exchanges about the OFS after market hours on September 3.

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