Government launches GIC Re OFS to sell up to 5% stake; floor price fixed at ₹352 per share

The Government of India, on Monday (June 15), has launched an Offer for Sale (OFS) in state-owned reinsurer General Insurance Corporation of India (GIC Re) to dilute up to a 5% stake in the company.The OFS has a total issue size of up to ₹3,088 crore (about $326 million). The base offer comprises a 2% stake sale worth up to ₹1,235 crore, with an option to sell an additional 3% stake through a greenshoe option, taking the total size to ₹3,088 crore.

The government will sell up to 5.0 per cent stake in General Insurance Corporation of India (GIC) at a floor price of Rs 352 per share. Offer for Sale in General Insurance Corporation of India (GIC) opens on 16.06.2026 (Tuesday) for Non-Retail investors. Retail investors and… pic.twitter.com/DQHUcbSQzh

— Secretary, DIPAM (@SecyDIPAM) June 15, 2026

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The floor price for the OFS has been fixed at ₹352 per share, representing a 9.1% discount to the stock’s last closing price. The OFS will open for non-retail investors on June 16, while retail investors can participate on June 17.Through the transaction, the government aims to reduce its holding in GIC Re by up to 5%, subject to demand under the offer.
Back in April this year, General Insurance Corporation of India said it had received a notice of demand under Section 156 of the Income Tax Act, 1961, from the Income Tax Department’s Assessment Unit for Assessment Year 2023-24, amounting to ₹350.47 crore. The order includes an assessment under Section 143(3) along with the demand notice issued on April 10, 2026.ALSO READ | GIC Re to withdraw marine hull war risk cover in high-risk regions from March 3

As per the company, the demand includes transfer pricing additions of ₹88.84 crore, disallowance of Section 14A expenses of ₹2.70 crore, payment made to unregistered GST entities of ₹565.01 crore, amortisation of premium on investment of ₹52.81 crore, and provision for doubtful debts of ₹329.48 crore.

GIC Re said it will pursue an appeal before the National Faceless Appeal Centre (NFAC) or other legal options against the notice after consultation with direct tax consultants within 30 days. The company stated there is no financial or operational impact arising from the order at this stage.

Shares of General Insurance Corporation of India ended at ₹387.15, up by ₹8.45, or 2.23%, on the BSE.

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