The Government held roadshows in London to gauge investor interest for a minority stake sale in state-run General Insurance Corporation of India Insurance Corp of India (GIC), according to Reuters.
Government Plans to sell 10% stake in tranches
This comes amid the Indian government’s plan to sell a total 10% stake in GIC in phases to comply with the market regulator’s minimum public shareholding requirement. Under the rule, all listed Indian companies must maintain a minimum public shareholding of 25%.
As part of this plan, the government had already offloaded a 3.4% stake in the insurer in September 2024 and currently holds an 82.4% stake.
As per the Reuters report, officials from the Department of Investment and Public Asset Management (DIPAM) travelled to London to meet investors and seek feedback on the proposed stake sale.
GIC shares are trading around 3.5% below the offer-for-sale price set during last year’s government stake sale.
India targets Rs 47,000 crore from stake sales
The government remains committed to its privatisation and minority stake-sale programme, although the pace of divestment has slowed over the past two years. Divestment receipts stood at Rs 17,500 crore in 2024/25 and so far in the current fiscal year.
Minority stake sales play a key role in boosting divestment proceeds. India aims to raise Rs 47,000 crore through stake sales and asset monetisation in the current financial year ending March 31, 2026.