GIC Re’s Share Sale Gets Positive Response from Investors
The General Insurance Corporation of India’s (GIC Re) Offer for Sale received a positive response from non-retail investors on Wednesday. The issue was subscribed 1.08 times the base size by non-retail investors, according to a post by the Secretary of the Department of Investment and Public Asset Management.
Retail investors and GIC employees will have the opportunity to bid on Thursday. The government has decided to exercise the green shoe option, which allows more shares to be sold if demand is higher than expected.
On Tuesday, the central government announced it will divest 3.39% equity with an additional 3.39% as a green shoe option in the state-owned company. GIC Re is a 100% Government of India-owned PSU company and a leading player in the international reinsurance industry.
Doubts Revealed
GIC Re -: GIC Re stands for General Insurance Corporation of India. It is a company owned by the Indian government that provides insurance services.
Offer for Sale -: An Offer for Sale (OFS) is a way for companies to sell their shares to the public. In this case, GIC Re is selling some of its shares to investors.
non-retail investors -: Non-retail investors are big investors like companies or wealthy individuals who buy large amounts of shares. They are different from regular people who buy smaller amounts.
subscribed 1.08 times -: When an issue is subscribed 1.08 times, it means that investors wanted to buy 8% more shares than were available. This shows high interest in the shares.
retail investors -: Retail investors are regular people who buy shares in smaller amounts compared to big investors.
green shoe option -: A green shoe option allows a company to sell more shares than originally planned if there is high demand. It helps to stabilize the share price.
divest -: To divest means to sell off a part of a company’s ownership. In this case, the government is selling some of its shares in GIC Re.
equity -: Equity means ownership in a company. When you buy shares, you own a part of that company.