The shares of General Insurance Corporation of India will remain in focus on Wednesday as the government's offer for sale to divest up to 5% stake in the state-run insurer opens for retail investors.
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 | GIC shares decline 7% as Rs 3,088 crore OFS opens for non-retail investors at 9% discountThe offer for sale witnessed strong investor demand on the first day, with the issue being oversubscribed 3.72 times, reflecting robust participation from institutional investors.
The government will exercise the full green shoe option.
Should you participate in GIC OFS?Market analysts however advised retail investors to avoid government’s OFS in GIC, citing concerns over profitability and sector headwinds.
