General Insurance Corporation of India (NSE: GICRE) Re-share: General Insurance Corporation’s (GIC) share is experiencing huge declines.
The share of the company fell more than 5 percent and was able to hit the intraday low of Rs 398.60. There’s an important reason behind this drop in share.
The government is planning to sell the 6.78 percent stake in the General Insurance Corporation (GIC) for Rs 395 per share.
What Is The Detail?
The more than 11.90 crore share, 6.78 percent of the stake will remain in the offer for sale (OFS).
The offer will be available for institutional investors from Wednesday. Retail investors can offer on Thursday.
Treasury officials expect to earn around Rs 4,700 crore through the sale of shares for Rs 395 for each equity.
The price of the minimum share is 6.23 percent lower than the closing value on Tuesday. The 52-week price for the share of the company is Rs 467, while the 52-week lowest cost is Rs 202.45.
The market capitalization of the business is Rs 70,623.37 crore. The company’s stock has risen by 30 percent over the year, and 80 percent during the year prior.
The Government Owns 85.78 Percent Stake
Tuhit Kant Pandey, Secretary of the Department of Investment and Public Asset Management (DIPAM), posted on the popular social network X that the sale bid for the General Insurance Corporation of India (GIC) will begin tomorrow.
Investors from non-retail can bid on Wednesday, whereas retail investors and GIC employees can bid on Thursday.
The government is selling a 3.39 percent stake. However, the option of selling another 3.39 percent stake was retained if there were more bids received.
GIC is owned by the government at present. 85.78 percent of GIC. GIC was listed on the share exchange in October 2017. The government raised Rs 9,685 crore through the IPO.
Quick Fact
| Company name | General Insurance Corporation |
|---|---|
| Reason for Share Decline | Government selling stake |
| Stake for Sale | 6.78% |
| Shares in OFS | More than 11.90 crore |
| Share Price for Sale | ₹395 per share |
| Expected Revenue from Sale | ₹4,700 crore |
| Sale Start Date | Wednesday for institutional investors, Thursday for retail investors |
| Market Capitalization | ₹70,623.37crore |
| Government Ownership | 85.78% |
| Initial Stake Being Sold | 3.39% |
| Possible Additional Stake for Sale | 3.39% |
| GIC Listed | October 2017 |
| IPO Revenue | ₹9,685 crore |
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