New Delhi:Thegovernment on Wednesday said it has sold a five per cent stake in the public sector reinsurance company, the General Insurance Corporation of India (GIC), with an enthusiastic response from investors to the offer for sale.

The stake sale is expected to garner about Rs 3,000 crore to the exchequer, taking the total proceeds from five PSU disinvestments so far in the current fiscal to around Rs 16,000 crore.

Non-retail investors oversubscribed the offer for sale (OFS) on Tuesday, putting in bids worth Rs 4,000 crore. The OFS opened for retail investors on Wednesday.

"Offer for Sale (OFS) in GIC Re closed with enthusiastic response from the investors. Government of India has divested 5 per cent of its stake in GIC Re with full subscription of base and green-shoe offer," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said on X.

Through the two-day OFS at a floor price of Rs 352 per share, the government proposed to divest 2 per cent of equity holding in GIC, with an additional 3 per cent as a green shoe option, taking the total stake dilution to 5 per cent, equivalent to over 8.77 crore shares.