State-run insurer General Insurance Corporation of India (GIC) share price will remain in focus on Tuesday, 16 June, as its Offer for Sale (OFS) opens for non-retail investors on June 16.
GIC share price closed 1.58% higher at ₹385.25 on Monday, ahead of the OFS opening.
GIC OFS details
The government on Monday announced the stake sale, aiming to divest up to 5% of its holding in the company at a floor price of ₹352 per share, according to the Department of Investment and Public Asset Management (DIPAM).
“The govt will sell up to 5 percent stake in GIC at a floor pierce 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.
The OFS consists of a base offer of 2% of GIC’s outstanding equity, along with a greenshoe option that allows the government to offload an additional 3% stake if demand remains strong.
At the floor price, a full 5% stake sale could generate approximately ₹3,088 crore, although the final issue price may vary depending on investor demand. The offer will be available for retail investors on June 17.
As of the March quarter, the Centre owned 82.4% of GIC, while non-retail and retail investors held 0.14% and 1.4% stakes, respectively, according to exchange data.
The transaction is expected to push the government’s disinvestment proceeds beyond ₹15,000 crore in just over a month. Earlier stake-sale initiatives this year have involved Coal India, Central Bank of India, NLC India and NHPC.
The government has opted to exercise the greenshoe option, reflecting the robust investor response received by all OFS issues launched so far this year. A greenshoe option gives the seller the flexibility to sell additional shares beyond the initial issue size in the event of strong investor demand.
In the Union Budget 2026, the Centre set a disinvestment target of ₹80,000 crore for FY27. According to media reports, Nirmala Sitharaman indicated that the government would accelerate its divestment programme, emphasizing that further stake sales in Central Public Sector Enterprises (CPSEs) would be actively pursued, following the Budget announcement.
GIC is the country’s largest reinsurance company, offering risk protection to insurers across India and international markets. The proposed stake sale forms part of the government’s wider disinvestment strategy to raise non-tax revenues and strengthen fiscal resources.
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