Government set to raise ₹3,090 crore via 5% stake sale in GIC Re

Mumbai: The government aims to raise about ₹3,090 crore by selling up to a 5% stake in General Insurance Corp. of India (GIC Re), to meet the market regulator’s minimum public shareholding requirements.

The floor price for the proposed stake sale under the offer-for-sale (OFS) route has been fixed at ₹352 per share, GIC Re informed the exchanges late on Monday. The floor price is at a near 10% discount to Monday’s closing price of ₹387.25 on the NSE.

Securities and Exchange Board of India's (Sebi's) guidelines mandate a minimum public shareholding of 25% for all listed companies. The government held a 82.4% stake in GIC Re at the end of March 2026.

Besides complying with the public shareholding norms, the stake sale is also intended to help the government meet its ambitious divestment target of ₹80,000 crore for FY27.

Open on 16 June

The OFS will open for subscription by non-retail investors on 16 June and for retail investors and employees on 17 June, as per the exchange filing.

The base size for the OFS includes sale of up to 35 million shares, with a face value of ₹5 each, amounting to 2% of the paid up equity share capital of GIC Re for ₹1,240 crore as per the floor price. In case of oversubscription, the government may choose to sell up to another 52.6 million shares, representing 3% of the paid up capital, for ₹1,850 crore.

A minimum of 25% of the shares on offer will be reserved for mutual funds and insurance companies under the non-retail portion. In addition, up to 20,000 shares of the company may be offered to eligible employees, with an investment limit of ₹5 lakh per employee.

Brokers for the deal

IDBI Capital Markets, SBI CAP Securities, ВОB Capital Markets and Elara Securities are the brokers for the deal, and BOB Capital Markets will be the settlement broker for the government.

The government has begun disinvestment and asset monetization on a strong footing in FY27, raising ₹18,533 crore, or over 23% of its full year's aim in just over two months of the fiscal year, data from the Department of Investment and Public Asset Management showed.

So far, it has collected ₹12,166 crore from paring its stake in three state-owned companies. This includes ₹2,266 crore from stake sale in Central Bank of India, ₹5,542 crore from Coal India, and another ₹4,357 crore from NHPC Ltd. The government has also collected ₹6,367 crore from asset monetisation. Last week, it raised another ₹1,263 crore through the sale of 3% stake in NLC India.

In FY26, the government had collected ₹45,306 crore from stake sales and asset monetisation, beating the revised Budget estimate by around ₹11,500 crore.