GIC shares decline 6% as Rs 3,088 crore OFS opens at 9% discount

Shares of General Insurance Corporation of India (GIC) declined 6% to their day’s low of Rs 366 on the BSE on Tuesday as the government’s offer for sale (OFS) to divest up to 5% stake in the state-run insurer opens today at a floor price of Rs 352 apiece, implying a 9% discount to the stock’s previous closing price.

In an exchange filing released on Monday, GIC announced that the government aims to sell up to 3.51 crore shares, representing a 2% equity stake, as part of the base offer which opens for non-retail investors today (June 16). The government can also exercise the oversubscription option to additionally sell another 5.26 crore shares, representing another 3% stake in the company for the OFS that opens for retail investors and employees on Wednesday (June 17).

This collectively brings the total offer size to 8.77 crore shares, or a 5% equity stake in the general insurance company. At the floor price of Rs 352 per share, this would be worth more than Rs 3,087.74 crore.

Also Read | Nilesh Shah bats for minimum qualifying criteria for F&O trading after Maharashtra man kills family, self over Rs 1.8 cr loss

The latest stake sale comes as the government recently ramped up its disinvestment efforts. Recently, the government offloaded some of its stake in Coal India, NHPC, NLC India and other PSU companies.

The government planned to sell 10% of its stake in the insurer ‌in tranches to meet the market regulator’s minimum public shareholding norm, Reuters reported in 2024. ⁠Of this, the government already sold a 3.4% shareholding in September 2024.

GIC shareholding pattern

The President of India owned more than 82% stake in GIC as of March 31, 2026, according to data on the company’s shareholding pattern on NSE. Life Insurance Corporation of India (LIC) meanwhile held around 10% stake, while 22 mutual funds held around 1.5% stake. Around 2.07 lakh retail investors collectively owned a 1.4% stake in the company.

GIC share price

GIC shares have fallen around 1% in one week but are up nearly 2% in 2026 so far. The shares of the company have rallied 103% in three years and 92% in five years.The company has a market capitalisation of more than Rs 67,588 crore. Also Read | M-Cap of Vedanta’s split cos jumps 67% to Rs 3.5 lakh crore(With inputs from agencies)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)