The floor price for the share sale has been fixed at ₹352 per share, representing a discount of around 9 per cent to the stock’s previous closing level ₹387.25.
| Photo Credit:
istock.com
Shares of General Insurance Corporation of India (GIC Re) fell over 7 per cent on Tuesday after the government’s offer for sale (OFS) to divest up to a 5 per cent stake in the state-owned reinsurer opened for non-retail investors.
The OFS received a strong response on the first day, fetching an overall subscription of 3.72 times. Retail investors and employees get to bid on June 17, 2026.
The stock closed 7.45 per cent lower on the NSE at ₹358.40.
Offer for Sale in General Insurance Corporation of India received an enthusiastic response from the investors on day one and was oversubscribed 3.72 times. Government has decided to exercise the entire green shoe option. Retail investors and employees get to bid on Wednesday 17th… pic.twitter.com/a8AOqLSHVK
— Secretary, DIPAM (@SecyDIPAM) June 16, 2026
The company informed stock exchanges on Monday that the Government of India plans to sell up to a 2 per cent stake, equivalent to 3.51 crore shares, through an OFS on June 16-17, 2026. The government has also retained an option to sell an additional 3 per cent stake, taking the total divestment size to as much as 5 per cent.
The OFS has been launched to help the company comply with minimum public shareholding norms.
The floor price for the share sale has been fixed at ₹352 per share, representing a discount of around 9 per cent to the stock’s previous closing level ₹387.25.
Market participants reacted negatively to the discounted share sale, with the stock witnessing selling pressure during the opening session as investors assessed the impact of the government’s stake dilution plan.
Published on June 16, 2026
