This, after the non-retail portion received strong demand on Tuesday, ending with a total subscription figure of 3.72 times in comparison to the total number of shares on offer. The response prompted the government to exercise the entire greenshoe option, which was to sell an additional 3% stake in the company, along with the base size of 2%.
How Can Retail Investors Subscribe To The GIC OFS?
- Open your trading account where you can find the “Corporate Action” or “OFS” section
- Check the floor price, bid quantity, price and other aspects mentioned before punching in your trade.
- The bid price you put in should always be above the cut-off price, which in this case is ₹352.2 per share. In case that does not happen, your bid will be rejected.
- Lastly, also ensure you have enough funds in your account for your bid to be accepted. The amount you punch in will get blocked and the approved sum will be deducted. Rest of the money will be refunded back.
The government had launched the GIC OFS on Monday to offload 2% stake worth ₹1,235 crore with a greenshoe option to sell an additional 3% stake in the company at a floor price of ₹352 per share, the DIPAM Secretary had stated.
In case the government manages to sell the entire 5% stake as planned, it will manage to garner over ₹3,000 crore.
At the end of the March quarter, the government held 82.4% stake in GIC, while retail and non-retail investors held 1.4% and 0.14%, respectively, as per data available on the exchanges.
The Centre’s stake dilution in GIC is among a series of its disinvestment transactions, which have witnessed healthy investor participation. The government’s divestment collections are set to cross 15,000 crore within a month.
Prior to this, the government’s disinvestment drive had included Coal India, Central Bank of India, NLC India and NHPC. It has exercised the greenshoe option in all the OFS’ it has announced this year, so far, due to healthy demand from market participants.
In the Union Budget, the government had set a disinvestment target of ₹80,000 crore for the financial year 2027. Post the Budget, finance minister Nirmala Sitharaman, in a press briefing, said there would be a lot more divestment going forward. She said divestment of central public sector enterprises (CPSEs) would be seriously considered from thereon.
GIC shares ended the previous session 8% lower at ₹356.4 apiece. It has declined 9% in the past month.
