Government Initiates Offer for Sale of Shares in General Insurance Corporation of India
The President of India, acting through the Ministry of Finance, Government of India, has announced an Offer for Sale (OFS) of equity shares in the General Insurance Corporation of India (GIC). The offer is being conducted exclusively through stock exchange mechanisms and is structured across two trading days.The offering includes a Base Offer Size and a subsequent Oversubscription Option, with additional shares reserved for eligible employees.
Offer Details Summary
| Share Category | Maximum Quantity Offered | Percentage of Paid Up Capital |
|---|---|---|
| Base Offer Size | 35,088,000 Equity Shares | 2.00% |
| Oversubscription Option | 52,632,000 Equity Shares | 3.00% |
| Total Potential Offering | Up to 87,720,000 Equity Shares | Up to 5.00% |
The offer is being undertaken for the purpose of achieving minimum public shareholding in the company.
Offer Timeline and Mechanism
The Offer will take place over two trading days on a separate window of the Stock Exchanges: June 16, 2026 (T day) and June 17, 2026 (T+1 day), with bidding scheduled from 9:15 a.m. to 3:30 p.m. (Indian Standard Time).
The structure of the offer caters to different investor groups across both trading days:
- T Day (June 16, 2026): Only non-Retail Investors are permitted to place bids during this day. Non-Retail investors who bid on T day have an option to carry forward their unallotted bids for consideration on T+1 day within the Retail Category.
- T+1 Day (June 17, 2026): The offer continues for Retail Investors and Employees, as well as non-Retail Investors who chose to carry forward their unallotted bids from T day.
In addition to the general offering, up to 20,000 Equity Shares may be offered to eligible employees of the Company in accordance with specific terms, subject to an approval limit of up to 500,000 per employee.
Pricing and Allocation
The Floor Price for the Offer has been set at 352.00 per Equity Share.
The allocation methodology is segmented by investor category:
- Non-Retail Category: Bidders must bid at or above the Cut-Off Price (or floor price if the category is undersubscribed).
- Retail and Employee Category: These categories have dedicated allotment methodologies, with Retail Investor being defined as an individual placing bids for Offer Shares of total value not exceeding 200,000.
The allocation process includes specific reservations: A minimum of 25% of the Offer Shares is reserved for Mutual Funds and insurance companies.
GICRE Stock Price Movement
On Monday, General Insurance Corporation of India shares edged higher to close at ₹387.25, recording a 1.58% gain. The stock traded during the session between a low of ₹381.85 and a high of ₹394.00, while handling a volume of 717,437 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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