GIC shares fall 5% after government begins offloading 6.78% stake sale via OFS

The government has proposed to sell 5.95 crore shares of the firm representing a 3.39% stake with an option to sell an additional 5.95 crore shares. As a result, the government is looking to offload a total of 6.78% stake in GIC.

The firm notified the exchanges that the OFS will commence on Wednesday for non-retail investors while retail investors and employees will be able to place their bids on Thursday. Additionally, 50,000 shares will be allotted to eligible employees of the firm, it said. The floor price of the offer stands at ₹395 per share, that takes the size of the OFS at over ₹4,700 crore.

The offer will take place during trading hours on a separate window of the stock exchanges on Wednesday commencing at 9:15 a.m. and closing at 3:30 p.m. The non-retail investors who have placed their bids on Wednesday and have chosen to carry forward their unallotted bids to Thursday will be allowed to carry forward and revise their bids.

Meanwhile, during the first quarter of fiscal year 2025, GIC reported a 39% year-on-year (YoY) rise in its gross premium income at ₹12,405.68 crore. Underwriting loss stood at ₹1,288.53 crore as compared to ₹1,557.44 crore in the same period last year.

Net profit rose 41.61% YoY to ₹1,036.36 crore during the quarter. The firm’s total assets stood at ₹1.86 lakh crore as of June 30, 2024 compared to ₹1.63 lakh crore in the same period a year ago. The firm’s net worth stood at ₹38,635.23 crore as against ₹32,984.27 crore in the same period a year ago.

Shares of the firm have gained over 28% since the beginning of the year. The stock has risen over 77% in the last one year.