General Insurance Corporation of India (GIC) stock extended its decline to the second consecutive day on Wednesday, 17 June, as the offer for sale (OFS) opened for retail investors.
GIC share price fell over 3% to ₹347.90 apiece on BSE. The stock opened at ₹350.50 today, below Tuesday’s close of ₹358.65.
GIC OFS details
The GIC’s OFS opened for retail investors today after the non-retail segment witnessed robust demand on Tuesday, with total subscription of 3.72 times.
Encouraged by the strong investor response, the government decided to fully exercise the greenshoe option, increasing the offer size by selling an additional 3% stake in the company on top of the base 2% stake sale.
The government launched an OFS for GIC, aiming to divest a 2% stake valued at ₹1,235 crore, with a greenshoe option allowing the sale of an additional 3% stake at a floor price of ₹352 per share, according to the DIPAM Secretary.
If the entire 5% stake is sold as planned, the government is expected to raise more than ₹3,000 crore from the transaction.
“The govt will sell up to 5 percent stake in GIC at a floor price of ₹352 per share. OFS in GIC opens on 16.6.2026 for non-retail investors. Retail investors and employees of GIC can bid on 17th. The govt will divest 2 per cent equity with an additional 3 percent as a green shoe option,” DIPAM Secretary said in a post on X on June 15.
Shareholding data available on the exchanges showed that, as of the March quarter-end, the government owned an 82.4% stake in GIC, while retail and non-retail investors held 1.4% and 0.14%, respectively.
The government has decided to invoke the greenshoe option, underscoring the strong investor appetite witnessed across all OFS issues launched this year. The greenshoe option allows the seller to offer additional shares beyond the originally planned issue size when investor demand exceeds expectations.
GIC, India’s largest reinsurer, provides risk coverage to insurance companies in both domestic and overseas markets. The proposed stake sale is part of the government’s broader disinvestment programme aimed at boosting non-tax revenue collections and enhancing fiscal resources.
GIC OFS: Should you participate or not?
Seema Srivastava, Senior Research Analyst at SMC Global Securities, believes that retail investors should approach GIC Re’s OFS cautiously rather than aggressively subscribing based on the current situation.
“The institutional cut-off price after the oversubscription option (green shoe) was around ₹352, while the stock is already trading below that level at about ₹348.65, indicating weak near-term demand and the possibility that institutional investors may not see meaningful upside immediately. The government’s OFS itself was launched at ₹352 per share, a discount to the prevailing market price, but the stock has continued to drift lower due to supply overhang and concerns regarding insurance sector profitability,” Srivastava said.
She further added that for retail investors, GIC Re appears more suitable as a medium- to long-term value opportunity rather than a short-term OFS gain.
Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, highlighted that the GIC OFS offers limited short-term listing or arbitrage opportunities for retail investors, given the relatively modest discount and current market conditions.
“Investors with a long-term investment horizon may consider participating in the offer and holding the stock, as GIC’s strong market position, stable business fundamentals, and potential for sustained growth could create value over time. The OFS appears better suited for long-term wealth creation rather than short-term gains,” Ojha added.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
