Under the OFS, the government has decided to exercise the greenshoe option and sell an additional 3.39% stake, taking the total offer size to 6.78%.
The government proposes to sell up to 3.39% equity on September 4 for non-retail investors.
At an offer price of Rs 395 a share, the share sale would fetch about Rs 4,700 crore to the government’s exchequer.
“Retail investors and Employees of GIC can bid on Thursday. Government will divest 3.39% equity with an additional 3.39% as green shoe option,” DIPAM Secretary Tuhin Kanta Pandey said.The OFS regulations mandate that only retail investors and employees will be allowed to place their bids on Thursday. However, those non-retail investors who have placed their bids on Wednesday and have chosen to carry forward their unallotted bids to the next day, will also be allowed to revise their bids.According to the latest shareholding pattern, the government currently holds 85.78% stake in GIC Re.General Insurance Corp is engaged in the activities of assuming all or part of the risk associated with existing insurance policies originally underwritten by other insurance carriers.
In the domestic business, the company provides reinsurance to the direct general insurance companies in the Indian market. It provides various classes of businesses, such as fire, motor, aviation, engineering, health, agriculture, marine hull, marine cargo and life, among others.
On Wednesday, General Insurance Corp shares closed 5.7% lower at Rs 397.50 on NSE.