GIC Re drops as government launches OFS to divest up to 5% stake

Shares of General Insurance Corporation of India (GIC Re) declined 6.66% to Rs 362.50 after the Government of India launched an offer for sale (OFS) to divest up to a 5% stake in the state-owned reinsurer.

Under the OFS, the government will initially sell 3.51 crore shares, representing 2% of GIC Re's equity capital. It also has an oversubscription option to sell an additional 5.26 crore shares, equivalent to 3% equity, taking the total offer size to 8.77 crore shares or 5% of the company's paid-up equity capital.

The OFS opened for non-retail investors on 16 June and will be available to retail investors and eligible employees on 17 June. The floor price has been fixed at Rs 352 per share, a discount of about 9.4% to the previous day's closing price of Rs 388.35 on the BSE.

The President of India, acting through the Ministry of Finance, is the promoter and seller in the transaction. Up to 20,000 shares have also been reserved for eligible employees, who can bid for shares worth up to Rs 5 lakh.

According to exchange data, bids were received for 1.43 lakh shares by 10:55 a.m. on the first day, translating into subscription of 0.45% of the base non-retail offer size of 3.16 crore shares. The indicative bid price stood at Rs 353.50 per share.

GIC Re is the largest reinsurer in the domestic reinsurance market in India. Internationally, GIC Re is an effective reinsurance partner for the Afro-Asian region, leading the reinsurance programmes of several insurance companies in Middle East and North Africa, and Asia including SAARC countries. As on March 2026, the Government of India held 82.40% stake in the company.

On a consolidated basis, GIC Re's net profit rose 1.35% to Rs 2,532.59 crore on 2.31% increase in total income to Rs 13,663.35 crore in Q4 March 2026 over Q4 March 2025.

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