GIC Re Offer For Sale: Government To Exercise Oversubscription Option
The overall offer size will, therefore, increase to 6.45 crore shares or 3.68% stake.
The government of India will exercise the oversubscription option in its current offer for sale of General Insurance Corp. shares that will include an additional 50.49 lakh equity shares.
That represents 0.29% of the company's total issued and paid-up equity share capital, supplementing the initial base offer of 5.95 crore equity shares, or 3.39% of the company's total equity share capital, according to the statement to the exchanges on Wednesday. The overall offer size will, therefore, increase to 6.45 crore shares or 3.68% stake.
From the total offer, 64.56 lakh shares representing 10% of the offer will be reserved for allocation to retail investors on Sept. 5. Additionally, 50,000 shares will be offered to employees, according to the regulatory filing.
The government's offer for sale got fully subscribed just before the close of market hours on Wednesday. The OFS received bids from non-retail investors for 5.81 crore shares as of 3.30 pm. This is 108.49% of the 5.35 crore shares reserved for them, according to the BSE data.
The government said on Tuesday that it 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 was looking to offload 3.39% via base offer at a face value of Rs 5, and an additional 3.39% through an oversubscription option on Sept. 4 and Sept. 5.
The government currently holds an 85.78% stake in the reinsurance company.
IDBI Capital Markets & Securities, SBICAP Securities Ltd., BoB Capital Markets Ltd., and Elara Securities India Pvt. acted as brokers for the OFS.
The stock fell as much as 5.76% during the day to Rs 397.35 apiece on the NSE. It closed 5.64% lower at Rs 397.85 per share. This compares with a 0.32% decline in the benchmark Nifty 50. It has risen 76% in the last 12 months and 27.54% year-to-date.
