Shares of (GIC Re) fell over 6 per cent in early trade on Tuesday after the government’s offer for sale (OFS) to divest up to a 5 per cent stake in the state-owned reinsurer opened for investors.
At 10.33 am, GIC Re shares were trading at ₹363.80 on the BSE, down 6.06 per cent from the previous close.
The decline came after the company informed stock exchanges on Monday that the Government of India plans to sell up to a 2 per cent stake, equivalent to 3.51 crore shares, through an OFS on June 16-17, 2026. The government has also retained an option to sell an additional 3 per cent stake, taking the total divestment size to as much as 5 per cent.
The OFS has been launched to help the company comply with minimum public shareholding norms.
The floor price for the share sale has been fixed at ₹352 per share, representing a discount of around 9 per cent to the stock’s previous closing level ₹387.25.
Market participants reacted negatively to the discounted share sale, with the stock witnessing selling pressure during the opening session as investors assessed the impact of the government’s stake dilution plan.