The issuance will come with an additional green shoe option for another 59.5 million shares.
The floor price has been set at Rs 395 per share, about 6% below GIC’s current market price. The offering is expected to raise around Rs 4,701 crore, which would aid the government’s disinvestment strategy and help in meeting its fiscal targets.
The OFS, the first significant stake sale in GIC since its IPO in October 2017, will open to investors on Wednesday. This will help the government reduce its holding to comply with SEBI’s 25% public shareholding requirement.
In preparation for the OFS, the government, along with the Department of Investment and Public Asset Management (DIPAM) and GIC Re management, has met with investors globally.GIC Re, India’s sole reinsurance company, has been focusing more on domestic business, which now accounts for 84% of its total portfolio. The company has seen a 36% increase in premium during the first quarter to Rs 12,589 crore. Profit was up 43% on lower incurred claims and better underwriting performance. The company has also seen improvement in financial metrics, with its net worth rising to Rs 38,635 crore from Rs 32,984 crore, solvency margin rising to 3.36 against 2.88 and its incurred claim ratio improving to 89.8% in Q1 FY24, down from 95% a year earlier.Shares of GIC closed 0.13% at Rs 421 Tuesday on BSE when the benchmark index fell 0.01%.
