Govt to sell up to 5 pc in GIC at Rs 352/share; OFS opens Tuesday

New Delhi, Jun 15 (PTI) The government will sell up to 5 per cent stake in General Insurance Corporation of India (GIC) at a floor price of Rs 352 per share.

The two-day offer for sale (OFS) will open for institutional investors on Tuesday and retail investors on Wednesday.

At the floor price of Rs 352 apiece, the sale of over 8.77 crore shares will fetch about Rs 3,000 crore to the exchequer.

The government will divest 2 per cent equity in GIC, with an additional 3 per cent as a green shoe option, Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said on X.

Shares of GIC closed 2.55 per cent higher at Rs 388.35 on the BSE. The floor price is at a discount of 9.36 per cent over Monday’s closing price.

The government

has already raised Rs 13,389 crore through public sector units’ stake sales in the current fiscal. This includes Rs 5,542 crore from Coal India, Rs 4,357 crore from NHPC, Rs 2,266 crore from Central Bank of India and Rs 1,223 crore from NLC India.

The government hopes to exceed the budgeted target of Rs 80,000 crore from PSU disinvestment and asset monetisation in the current fiscal. PTI JD HVA