Shares of General Insurance Corporation (GIC Re) dropped 5.4% to ₹398.60 today, as the government began selling its 6.78% stake in the company through an offer for sale (OFS) at ₹395 per share.
The OFS is valued at about ₹4,701 crore at the floor price. The sale started today for non-retail investors, who can buy up to 3.39% of the stake. Retail investors and employees will be able to place their bids on Thursday.
Non-retail investors who bid today and choose to carry forward their bids can revise them the next day. The OFS includes 5.95 crore shares with an option to sell more. Also, 50,000 shares (0.04% of the offer) are reserved for eligible employees.
The shares are being offered at a 6.13% discount compared to Tuesday’s closing price. The government announced the OFS after the market closed on September 3. GIC Re shares have risen by 78.3% in the past year and 29.3% year-to-date, but have fallen 1.75% in the last month.
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