The Indian government is set to sell up to a 5% stake in General Insurance Corporation (GIC) at a floor price of Rs 352 per share. The offer for sale (OFS) will open on Tuesday, allowing the government to offload over 8.77 crore shares.
Financial Impact
At the floor price of Rs 352 per share, the sale is expected to generate approximately Rs 3,000 crore for the exchequer. This move is part of the government's disinvestment strategy to raise funds and meet fiscal targets.
OFS Details
The OFS will be open for institutional investors on the first day, with retail investors having the opportunity to participate on the following day. The government has set a floor price that reflects a discount to the current market price, aiming to attract investors.
Key Points:
- Government to sell up to 5% stake in GIC
- Floor price fixed at Rs 352 per share
- Over 8.77 crore shares on offer
- Expected to raise about Rs 3,000 crore
- OFS opens Tuesday for institutional investors
The disinvestment is part of the government's broader plan to reduce its holdings in public sector undertakings and improve fiscal discipline. GIC, being a leading reinsurer, has shown strong financial performance, making this stake sale attractive to investors.
