The Indian government opened an Offer for Sale (OFS) on June 16 to divest up to 5% of its stake in General Insurance Corporation of India (GIC). The move follows GIC's share price closing 1.58% higher at ₹385.25 on June 15, ahead of the OFS opening for non-retail investors, according to livemint.com.
The OFS allows non-retail investors to purchase shares directly from the government’s holding in GIC. The government announced the stake sale on June 15, aiming to raise funds by reducing its ownership in the state-run insurer. GIC shares saw volatility, with prices tumbling 6% on the day of the OFS launch, as reported by thehindubusinessline.com.
This divestment is part of the government’s broader strategy to unlock value in public sector enterprises and enhance market participation. GIC, a key player in India’s reinsurance sector, has attracted investor attention amid ongoing reforms and market dynamics. The 5% stake sale aligns with recent trends where the government has been reducing holdings in select public sector companies to boost liquidity and improve governance.
The OFS for GIC opened on June 16 exclusively for non-retail investors, with the government targeting to complete the divestment within the week. Market participants will closely monitor the subscription levels and final pricing to gauge investor appetite for the insurer’s shares.