GIC shares tumble 6% as centre launches stake sale via OFS

Shares of General Insurance Corporation of India (GIC Re) fell nearly 6% in early trade on Tuesday after the government launched an offer for sale (OFS) to pare its stake in the state-owned reinsurer.

Snapping a two-session gaining streak, the stock opened 4.6% lower at ₹370.40 on the BSE despite a positive broader market. It declined as much as 5.76% to ₹365.95, pulling the company's market capitalisation down to around ₹64,325 crore.

Trading activity surged, with around 1.4 lakh shares changing hands in the first hour of trade, significantly higher than the two-week average volume of 0.20 lakh shares.

The stock had touched a 52-week high of ₹418 on April 16, 2026, and a 52-week low of ₹351 on March 9, 2026. GIC Re shares are down about 3% so far in calendar year 2026 and have declined more than 5% over the past year.

Floor price for OFS set at 9.4% discount

The Centre has set a floor price of ₹352 per share for the OFS, representing a discount of about 9.4% to GIC Re's previous closing price of ₹388.35 on the BSE. The issue opened for institutional and other non-retail investors on Tuesday, while retail investors will be able to bid on Wednesday.

As per the OFS document filed with the exchanges, the government is initially offering a 2% stake in the company, with an option to sell an additional 3% stake through a greenshoe mechanism if demand remains strong.

If the entire 5% stake is sold at the floor price, the government could mobilise around ₹3,088 crore, although the final proceeds will depend on the discovered price during the bidding process.

As of March 31, 2026, the government held an 82.4% stake in GIC Re. Institutional and retail investors held approximately 0.14% and 1.4%, respectively. The divestment is part of the Centre's ongoing efforts to comply with the Securities and Exchange Board of India’s (Sebi) minimum public shareholding (MPS) norms, which require listed companies to maintain a prescribed level of public ownership.

Govt raises ₹13,389 crore via OFS in FY27

The latest OFS forms part of the government's broader disinvestment programme aimed at meeting its ₹80,000-crore divestment target for FY27. The government has already raised ₹13,389 crore through OFS transactions so far this financial year.

The bulk of these proceeds has come from stake sales in public sector enterprises, including ₹5,542 crore from Coal India, ₹4,357 crore from NHPC, ₹2,266 crore from Central Bank of India, and ₹1,224 crore from NLC India.

Including other asset monetisation initiatives and miscellaneous capital receipts, the government's total disinvestment collections have reached nearly ₹20,000 crore, achieving about a quarter of its annual target within the first three months of FY27.

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