Institutional investors responded well to the government’s offer for sale (OFS) of up to a 5 per cent stake in General Insurance Corporation of India (GIC) on Tuesday, with the issue oversubscribed 3.72 times on the first day. In comparison to the base issue size of 3.16 crore shares set out for them, non-retail investors bid for more than 11.73 crore shares, according to BSE data. The bids were valued at more than Rs 4,000 crore at an indicated price of Rs 352.92 per share, according to BSE data. The bids were valued at more than Rs 4,000 crore at an indicated price of Rs 352.92 per share.
Over 8.77 crore shares are represented by the entire offer size. The floor price was 9.36 per cent less than GIC’s closing price on Monday. The government expects to earn about Rs 3,000 crore from the deal.
On Wednesday, the OFS will be open to retail investors. The government first proposed to sell a 2 percent stake in GIC at a floor price of Rs 352 per share under the two-day OFS. An additional 3 percent might be sold under the green shoe option, bringing the total potential stake sale to 5 percent.
