The Centre’s decision to shed stake in General Insurance Corporation of India was oversubscribed 3.72 times on day one of the two-day offer for sale (OFS) on Tuesday.The OFS received an “enthusiastic response from the investors on day one and was oversubscribed 3.72 times. The government has decided to exercise the entire green shoe option,” Secretary to the Department of Investment and Public Asset Management (DIPAM) Arunish Chawla posted on X.Day one was for institutional investors. Retail investors and employees get to bid on Wednesday. Shares of the reinsurer closed 7.65% lower on Tuesday at ₹358.65 each on the BSE.The government has fixed the floor price of the OFS at ₹352 per share, which was a discount of more than 9% compared to Monday’s closing price of ₹388.35. The Centre is proposing to sell upto 5% holding in the company where its stake, prior to the OFS, stood at 82.40%.Per the OFS document, a little over 3.50 crore shares representing 2% of the total paid up equity share capital were to be sold on June 16 to non-retail Investors and on June 17 to retail investors, employees and for non-retail Investors who choose to carry forward their un-allotted bids.Under the oversubscription option, more than 5.26 crore shares representing 3% of the equity share capital can be sold – with the OFS collectively representing 5% stake. Additionally, up to 20,000 shares may be offered to eligible employees of the company -- eligible employees can apply for shares amounting up to ₹5 lakh each.Besides helping the government take another step towards achieving the minimum public shareholding norm of 25%, for listed companies, OFS such as these would help the Centre raise resources through its disinvestment programme. The GIC Re is the latest in the disinvestment exercise this year. The OFS proceeds will augment the ₹13,389.42 crore the government has raised thus far, in FY27, from the stake sale in Central Bank of India, Coal India, NHPC and NLC India. Published - June 16, 2026 09:50 pm IST