GIC Re Offer for Sale Receives Strong Response from Non-Retail Investors

General Insurance Corporation of India's (GIC Re) Offer for Sale garnered significant interest from non-retail investors. The issue saw a 1.08 times subscription on Wednesday. Retail investors and GIC employees are set to participate on Thursday, with the government opting to exercise the green shoe option.

The General Insurance Corporation of India (GIC Re) received a positive response to its Offer for Sale (OFS) from non-retail investors on Wednesday. According to a post on X by the Secretary of the Department of Investment and Public Asset Management, the OFS issue saw a subscription rate of 1.08 times the base size.

Retail investors and GIC employees are scheduled to place their bids on Thursday. The Secretary's post on X stated, "Govt has decided to exercise the green shoe option. Retail investors and Employees of GIC get a chance to bid tomorrow."

An Offer for Sale is a mechanism wherein company promoters sell their shares to raise additional funds. The green shoe option is a provision allowing the seller to offer more shares than originally planned if demand exceeds expectations. On Tuesday, the government announced plans to divest 3.39 percent equity, with an additional 3.39 percent available under the green shoe option, in the state-owned company. GIC Re is fully owned by the Government of India and is a prominent player in the international reinsurance market.