GIC Share Price Falls Over 6% as Government Launches OFS at ₹352 Per Share

General Insurance Corporation of India share price came under pressure in early trade on June 16 after the Government of India announced an Offer for Sale (OFS) to divest up to a 5% stake in the state-owned reinsurer. The proposed stake sale is aimed at increasing public shareholding and supporting the government's disinvestment plan. 

GIC Share Price Declines on June 16 

At 10:22 AM, General Insurance Corporation of India share price declined 6.01% to ₹364.50 per share on the BSE during the morning trading session. The stock opened at ₹370.40 per share, lower than Monday's closing price of ₹388.35 on the BSE. 

Government to Sell Up to 5% Stake Through OFS 

The Government of India will initially offer a 2% stake in General Insurance Corporation of India through the OFS route, with an option to sell an additional 3% stake if investor demand remains strong. 

The floor price for the OFS has been fixed at ₹352 per share, representing a discount to the previous closing price. The OFS opened for institutional and non-retail investors on June 16, while retail investors and eligible employees can bid on June 17. 

Government Aims to Raise Around ₹3,090 Crore 

Based on the complete 5% stake sale, the government aims to raise approximately ₹3,090 crore. The base issue comprises up to 3.5 crore shares, representing 2% of the company's paid-up equity capital, while an additional 5.26 crore shares may be offered under the green shoe option. 

At least 25% of the non-retail portion has been reserved for mutual funds and insurance companies. Eligible employees can also participate in the OFS, subject to prescribed investment limits. 

Government to Reduce Stake in GIC Through OFS 

The proposed stake sale forms part of the government's broader disinvestment plan and is expected to improve the company's public shareholding. As of March 31, 2026, the government held an 82.4% stake in GIC Re, well above the 75% ceiling prescribed under SEBI's minimum public shareholding norms for listed companies. 

The proceeds from the transaction will also contribute towards the government's FY27 disinvestment target of ₹80,000 crore. 

Read More: Stocks to Watch on June 16, 2026: HCL Technologies, SBI, Adani Enterprises, IRCTC, GIC and More 

Government Continues Disinvestment Drive 

The Centre has already raised ₹18,533 crore through stake sales and asset monetisation in FY27. This includes proceeds from stake sales in Central Bank of India, Coal India, NHPC and NLC India, along with receipts from asset monetisation initiatives. 

Conclusion 

GIC share price remained under pressure after the government announced the OFS to divest up to a 5% stake at a floor price of ₹352 per share. The transaction is aimed at improving public shareholding and advancing the government's FY27 disinvestment plan while providing investors an opportunity to participate through the OFS. 

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