In a bid to adhere to India’s minimum public shareholding regulations, a senior government official revealed plans to sell a minimum of 10% in each of the two publicly listed state-owned insurance giants: General Insurance Corporation of India (GIC) and New India Assurance Company.
Presently, the government maintains 85.78% in GIC and 85.44% in New India Assurance Company Ltd.
The Financial Ministry is contemplating an offer for sale (OFS) for both GIC and New India Assurance. With the government's ownership well above the permissible threshold of 85%, the aim is to execute the OFS for each company before August 2024, as stated by the official in a report from Moneycontrol.
The ministry has already initiated talks with potential investors but has encountered limited interest. Failure to reduce government ownership to the mandated 75% might prompt the government to seek an extension from the market regulator beyond the established deadline.
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