Government initiates GIC Re’s OFS to divest up to 5% stake; minimum price set at ₹352 per share.

On Monday (June 15), the Government of India initiated an Offer for Sale (OFS) involving state-owned reinsurer General Insurance Corporation of India (GIC Re) to divest up to a 5% stake in the company.

The total issue size of the OFS is up to ₹3,088 crore (approximately $326 million). The base offer consists of a 2% stake sale valued at ₹1,235 crore, with an additional option to sell a further 3% stake through a greenshoe option, bringing the total size to ₹3,088 crore.

The government will sell up to 5.0 percent stake in General Insurance Corporation of India (GIC) at a floor price of ₹352 per share. The Offer for Sale in General Insurance Corporation of India (GIC) opens on June 16, 2026 (Tuesday) for Non-Retail investors. Retail investors can participate on… pic.twitter.com/DQHUcbSQzh

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

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The fixed floor price for the OFS is ₹352 per share, which reflects a 9.1% discount compared to the stock’s last closing price. The OFS will commence for non-retail investors on June 16, while retail investors can engage starting June 17.

The goal of this transaction is to decrease the government’s stake in GIC Re by up to 5%, depending on the demand for the offer.

Earlier in April, General Insurance Corporation of India reported that 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 the Assessment Year 2023-24, amounting to ₹350.47 crore. This order encompasses an evaluation under Section 143(3) along with the demand notice issued on April 10, 2026.

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According to the company, the demand consists of transfer pricing additions amounting to ₹88.84 crore, disallowance of Section 14A expenses totaling ₹2.70 crore, payments made to unregistered GST entities of ₹565.01 crore, amortisation of premium on investment at ₹52.81 crore, and a provision for doubtful debts of ₹329.48 crore.

GIC Re has stated it will appeal to the National Faceless Appeal Centre (NFAC) or explore other legal options against the notice in consultation with tax consultants within 30 days. The company indicated that the order does not currently result in any financial or operational impact.

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

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