The Indian government plans to sell up to a 5% stake in General Insurance Corporation (GIC) via an offer for sale (OFS), the state-run insurer said on Monday.
Here are more details:
* The OFS includes a base offer of up to a 2% equity stake in GIC, with an option to sell an additional 3% if the issue is oversubscribed.
* The floor price is set at 352 Indian rupees per share ($3.72), implying a discount of about 9.1% to the company’s last close on Monday.
* The OFS opens for non-retail investors on June 16 and for retail investors on June 17.
* India plans to offload 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.
* The government holds 82.4% in the insurer as of March 31, according to data compiled by LSEG.
Source: Economic Times