Government OFS for 2-5% Stake in GIC India

Offer Details:

Type of Transaction: Offer for Sale (OFS) / Secondary Share Offering

Seller (Promoter): The President of India, acting through and represented by the Ministry of Finance, Government of India

Number of Shares Offered:

Base Offer Size: 35,088,000 Equity Shares (2.00% of paid-up equity)
Oversubscription Option: Up to 52,632,000 Equity Shares (3.00% of paid-up equity)
Total Potential Offer: 87,720,000 Equity Shares (5.00% of paid-up equity)

Percentage of Paid-Up Equity:

Base Offer: 2.00%
With Oversubscription: 5.00%

Employee Offer: Additionally, up to 20,000 Equity Shares may be offered to eligible employees of the Company, subject to approval. Each eligible employee may apply for Equity Shares amounting up to ₹500,000.

Timelines:

T Day (Non-Retail Investors): June 16, 2026

Bidding Hours: 9:15 a.m. to 3:30 p.m. (Indian Standard Time)
Only non-Retail Investors are allowed to place bids. They may indicate willingness to carry forward un-allotted bids to T+1 day.

T+1 Day (Retail Investors and Carry-Forward Bids): June 17, 2026

Bidding Hours: 9:15 a.m. to 3:30 p.m. (Indian Standard Time)
Only Retail Investors and Employees are allowed to place new bids. Non-Retail Investors who chose to carry forward un-allotted bids may revise them.

Pricing & Allocation:

Floor Price: ₹352.00 per Equity Share

Context: The floor price is set at ₹352.00. The document does not provide a comparison to the current market price.

Retail Discount: Nil

Context: No discount is offered to retail investors.

Allocation Method:

Non-Retail Category Allocation Methodology:

Allocation is at or above the Floor Price on a price priority basis at multiple clearing prices.
A minimum of 25% of the Offer Shares are reserved for Mutual Funds and Insurance Companies, subject to valid bids.
Non-Retail Investors can choose to carry forward un-allotted bids from T day to T+1 day.
No single bidder (other than Mutual Funds and Insurance Companies) shall be allocated more than 25% of the Offer Shares.
In case of oversubscription, allocation is done on a proportionate basis.
The Seller may exercise the Oversubscription Option after T day trading hours (by 5 p.m.) if there is oversubscription.

Retail Category Allocation Methodology:

10% of the Offer Shares are reserved for allocation to Retail Investors (value of bids not more than ₹200,000 aggregated across Stock Exchanges).
Retail Investors may bid at any price above the Floor Price or at the "Cut-Off Price" (the lowest price at which Offer Shares are sold in the non-Retail Category).
Bids below the Cut-Off Price are not considered for allocation.
In case of oversubscription, allocation is done on a proportionate basis.

Mutual Funds & Insurance Companies:

A minimum of 25% of the Offer Shares are reserved for them. Any unsubscribed portion becomes available to other non-Retail bidders.

Employee Category:

Employees may bid only at the "Cut-Off Price".
In case of under-subscription, the unsubscribed portion may be allotted on a proportionate basis for a value in excess of ₹200,000, subject to a total per employee limit of ₹500,000.
PAN-mismatched bids will be rejected.

Brokers & Settlement:

Seller’s Brokers:

1. IDBI Capital Markets & Securities Limited (BSE: 084; NSE: 07066)

2. SBICAP Securities Limited (BSE: 095; NSE: 10529)

3. BOB Capital Markets Limited (BSE: 3258; NSE: 13045)

4. Elara Securities (India) Private Limited (BSE: 3241; NSE: 12898)

Settlement Broker: BOB Capital Markets Limited (BSE: 3258; NSE: 13045) will act as the Settlement Broker.

Settlement Timelines:

T Day Bids (Non-Retail with upfront payment): Settlement on T+1 Day.
T Day Bids (Institutional without upfront payment): Settlement as per secondary market rules (T+1 day).
T+1 Day Bids (Carried-forward Non-Retail with upfront payment): Settlement on T+2 Day.
T+1 Day Bids (Retail and Employee Category): Settlement on T+2 Day.
T+1 Day Bids (Carried-forward Institutional without upfront payment): Settlement on T+2 day.

Withdrawal & Cancellation Conditions:

Withdrawal: The Seller reserves the right to not proceed with the Offer at any time prior to the opening on T Day. A cooling-off period of 10 trading days applies after withdrawal before another OFS can be made.

Cancellation: The Offer may be cancelled in full if:

1. The Seller fails to get sufficient demand at or above the floor price.

2. There is a default in the settlement obligation.

3. On T day, post-bidding, if the Seller fails to get sufficient demand from non-retail investors.

The decision is at the sole discretion of the Seller. Cancellation requests will be accepted up to 5:00 p.m. on T day.

Other Noteworthy Information:

Purpose: The Offer is undertaken to achieve the minimum public shareholding (MPS) norms prescribed under Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, and Regulation 38 of SEBI LODR Regulations, 2015.

IRDAI Regulations: The notice highlights IRDAI regulations (Registration Regulations and Master Circular) governing share transfers in insurance companies. Key points include:

Acquisition of shares taking aggregate holding above 1% but below 5% requires filing a self-certification of 'fit and proper' criteria with the insurer and company.
Acquisition of shares taking aggregate holding to more than 5% requires prior approval from IRDAI.
Bidders intending to acquire shares such that their holding exceeds these thresholds must comply with these requirements.

Important Disclaimers: The notice contains extensive legal disclaimers clarifying that:

This is not a public offer or prospectus.
The Offer Shares have not been and will not be registered under the U.S. Securities Act of 1933 and are not being offered in the United States except to Qualified Institutional Buyers (QIBs) in exempt transactions.
The Offer is subject to the guidelines of SEBI and the Stock Exchanges (BSE and NSE).
Bidders must make representations and warranties regarding their eligibility to participate, particularly if they are located in the United States, European Economic Area, or United Kingdom.