The robust response from institutional investors has prompted the government to exercise the entire greenshoe option, allowing it to sell the full 5% stake on offer.
Offer for Sale in General Insurance Corporation of India received an enthusiastic response from the investors on day one and was oversubscribed 3.72 times. Government has decided to exercise the entire green shoe option. Retail investors and employees get to bid on Wednesday 17th… pic.twitter.com/a8AOqLSHVK
— Secretary, DIPAM (@SecyDIPAM) June 16, 2026
The OFS opened for non-retail investors on June 16 at a floor price of ₹352 per share, a discount of more than 9% to GIC Re’s previous closing price of ₹387.25. Retail investors and eligible employees will be able to place bids on Wednesday, June 17.
The government had initially planned to sell a 2% stake worth about ₹1,235 crore, with an option to offload another 3% if demand remained strong. With the greenshoe option now fully exercised, the total issue size has increased to around ₹3,088 crore.
The GIC stake sale is the latest in a series of government disinvestment transactions that have seen healthy investor participation. Over the last month, the Centre has launched OFSs in Coal India, NHPC, Central Bank of India and NLC India, with each attracting enough demand for the greenshoe option to be utilised.
Those four stake sales together raised nearly ₹13,400 crore. If the government completes the entire GIC transaction, the amount raised through recent OFSs alone will cross ₹16,000 crore.
The sale is also aimed at helping the government move closer to minimum public shareholding requirements. As of March 2026, the Centre held an 82.4% stake in GIC Re, well above the mandated 75% threshold.
Including monetisation receipts, the government’s collections currently stand at ₹21,732 crore, or around 27% of the government’s full-year target of ₹80,000 crore. With another successful OFS underway, the disinvestment programme continues to gather momentum.
hares of the state-owned reinsurer fell more than 6% during Tuesday’s session as investors reacted to the discounted stake sale.
