Government To Sell Up To 6.8% Stake In GIC At Rs 395 Per Share

The government will sell up to a 6.8% stake in General Insurance Corp. through the offer-for-sale route at a floor price of Rs 395 per share.

It will offload 5,95,12,000 shares, or 3.39%, via base offer at a face value of Rs 5, and an additional 5,95,12,000 units, or 3.39%, through an oversubscription option on Sept. 4 and Sept. 5, according to an exchange filing on Tuesday.

If the oversubscription option is exercised, then 11,90,24,000 shares, or 6.78%, will represent the base offer size in addition to 50,000 equity shares that will be offered to the company's employees, subject to the approval from the appropriate stakeholders and terms and conditions provided in the OFS guidelines, it said.

Only non-retail investors will be allowed to place their bids on Sept. 4 or T day and further can show their willingness to carry forward their unallocated bids on Sept. 5 or T+1 day for allocation to them in the unsubscribed portion of retail category, it said.

Retail investors, employees and non-retail investors who place their bids on Sept. 4 and have chosen to carry forward their unallocated bids on Sept. 5 are allowed to revise their bids on T+1, according to the filings.

IDBI Capital Markets and Securities Ltd., SBICAP Securities Ltd., BOB Capital Markets Ltd., and Elara Securities India Pvt. will be acting as settlement brokers for the offer on behalf of the seller's broker.

Shares of General Insurance Corp. closed 0.33% lower at Rs 421.65 apiece, compared to a flat close in the benchmark NSE Nifty.