GIC Share Price Falls 6% After Government Launches OFS to Sell Up to 5% Stake

GIC OFS: Shares of General Insurance Corporation of India (GIC Re) came under pressure on Tuesday, 16 June, after the government announced plans to sell up to a 6% stake in the company through an Offer for Sale (OFS).

The stock fell 6.26% to ₹363 per share as of 12:07 PM, while Nifty50 is up 0.33% 

As of 12.07 PM

GIC OFS Date

According to a stock exchange filing, the government will initially sell a 2% stake in GIC. It also has the option to offload an additional 3% stake through a greenshoe option if investor demand remains strong.

The Department of Investment and Public Asset Management (DIPAM) announced that the OFS will be conducted over two days. Non-retail and institutional investors can bid on 16 June 16 (Today), while retail investors can participate on 17 June (Tomorrow).

The government has fixed the floor price at ₹352 per share, which is about 9.4% lower than GIC's closing price of ₹388.35 on BSE on Monday.

How Much Fund Can the Government Raise through GIC OFS?

At the floor price of ₹352 per share, the sale of over 8.77 crore shares could fetch around ₹3,000 crore for the government. If the entire 5% stake is sold, the proceeds could reach approximately ₹3,088 crore, depending on the final issue price.

The government's decision to keep the greenshoe option reflects confidence in investor demand, as previous OFS issues this year have received a strong response.

Why Is The Government Selling Stake In GIC?

The stake sale is part of the Centre's broader disinvestment programme and its efforts to increase public shareholding in listed public sector companies.

As of 31 March 2026, the Government of India held an 82.4% stake in GIC. Through the OFS, the government aims to improve stock liquidity and move closer to meeting minimum public shareholding requirements.

GIC is India's largest reinsurer and plays a crucial role in the insurance sector by providing reinsurance support to domestic insurers while also operating in international markets.

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Government's PSU Divestment Drive Gains Momentum

The GIC OFS marks the 5 stake sale by the government in a public sector undertaking during the current fiscal year. So far, the Centre has raised around ₹13,389 crore through PSU stake sales, including:

• ₹5,542 crore from Coal India

• ₹4,357 crore from NHPC

• ₹2,266 crore from Central Bank of India

• ₹1,223 crore from NLC India

With the GIC transaction, the government's disinvestment proceeds are expected to cross ₹15,000 crore within a little over a month.

The Centre has set a target of ₹80,000 crore from disinvestment and asset monetisation in FY27 and is expected to continue monetising assets and reducing stakes in public sector companies during the year.