GIC shares fall 5% after Govt announces 6.8% stake cut

GIC share price: The shares of the state-owned insurance major General Insurance Corporation of India fell as much as 5 per cent intraday to Rs 398.60 after the government proposed to offload a stake of about 6.8 per cent in the company according to an exchange filing on Tuesday. 

The sale will made at a floor price of Rs 395 per share, as per the filing, a 6.3 per cent discount to Tuesday's closing price. The government currently owns more than 85 per cent stake in the insurer.

The proposal comes months after a source told Reuters that the government is open to selling a minority stake in insurers GIC and Life Insurance Corporation of India (LIC) in the year ending 2025 following an assessment of investor appetites.

"The government has received good feedback in investor roadshows for GIC, and is open to sell its 10 per cent stake in tranches depending on its shares' value," the government official had said at the time.

As of 09:45 am, the shares of the company were trading 19.25 points or 4.57 per cent down at Rs 402.00 apiece 

(This is a developing story)