Shares of General Insurance Corporation of India Ltd (GIC Re) fell sharply in Wednesday's trade after the Centre's stake sale in the reinsurer started via the offer for sale (OFS) route. The stock slipped 5.38 per cent to hit a day low of Rs 398.60.
The OFS opened for subscription for non-retail investors today. BSE data showed that the public issue received 1,88,99,612 bids till 2:10 pm.
Retail investors and GIC Re employees can bid tomorrow (September 5). The equity shares can be subscribed between 9:15 am and 3:30 pm on both days. The floor price for the OFS has been fixed at Rs 395 per equity share.
The government is looking to divest 3.39 per cent equity in the Mumbai-headquartered reinsurance PSU with an additional 3.39 per cent stake as the green shoe option.
"We hereby notify you that the seller proposes to sell up to 5,95,12,000 equity shares of the face value of Rs 5 each of the company (representing 3.39 per cent of the total paid-up equity share capital of the company) (Base Offer Size), on September 4, 2024 (T day) (for non-retail investors only) and on September 5, 2024 (T+1 day) (for Retail investor, employees and non-retail investors, who chose to carry forward their un-allotted bids from T day) with notice an option to additionally sell 5,95,12,000 (3.39 per cent) equity shares forming part of the base offer size and the oversubscription will represent 11,90,24,000 (6.784 per cent) equity shares of the company, collectively," GIC Re stated in a BSE filing.
Additionally, 50,000 equity shares (0.04 per cent of the offer shares) may be offered to eligible company employees. The state-run insurer also mentioned that employees may apply for equity shares amounting up to Rs 5,00,000.
The scrip traded lower than the 5-day, 10-, 20-day and 30-day simple moving averages (SMAs) but higher than the 50-day, 100-, 150-day and 200-day SMAs. The stock's 14-day relative strength index (RSI) came at 48.14. A level below 30 is defined as oversold while a value above 70 is considered overbought.
Around 1.90 lakh shares were last seen changing hands on BSE today. The figure was higher than the two-week average volume of 82,000 shares. Turnover on the counter came at Rs 7.64 crore, commanding a market capitalisation (m-cap) of Rs 70,123.37 crore.
As of June 2024, the government held an 85.78 per cent stake in the PSU, which is the largest company engaged in the reinsurance business.