The government is planning to sell up to a 5 per cent stake in General Insurance Corporation (GIC) through an offer for sale (OFS), the state-run insurer said on Monday.
A base offer of up to a 2 per cent equity share in GIC is included in the OFS, with an option to sell an extra 3 per cent if the offering is oversubscribed.
The Secretary, Department of Investment and Public Asset Management, under Finance Ministry, wrote on its official X account, “Offer for Sale of equity in General Insurance Corporation of India (GIC) opens tomorrow for non-retail investors. Retail investors can bid on 17.06.2026. Government offers to disinvest 2.0% equity in the GIC with an additional 3.0% as green-shoe option.”
The floor price is set at Rs 352 per share, which is roughly 9.1% less than the company’s previous close on Monday.
On June 16, the OFS opens to non-retail investors, and on June 17, it opens to retail investors.
According to media reports in 2024, India planned to sell off 10 per cent of its insurer ownership in tranches in order to comply with the market regulator’s minimum public shareholding requirement. In September 2024, the government sold 3.4 per cent of this.
As of March 31, the government owned 82.4 per cent of the Insurance, according to statistics gathered by LSEG.
Earlier, in May, a report by Praxis Global Alliance highlighted that India’s general insurance market continues to remain heavily dependent on intermediaries for customer acquisition and policy sales, leading to high distribution costs and concerns around long-term profitability.
The report had noted that nearly 80 per cent of new business in the Indian general insurance industry comes through intermediaries such as brokers, agents and corporate agents.
