General Insurance Corporation stock has rallied over 75 percent year-to-date, outperforming benchmark Nifty 50 which has risen 15 percent during this period.
Shares of General Insurance Corporation of India (GIC Re) hit a 52-week high of Rs 230.20 after rallied 10 per cent on the BSE in intra-day trade on Tuesday on the back of heavy volumes. The trading volumes on the counter jumped over four-fold with a combined 3.4 million equity shares having changing hands on the NSE and BSE till 10:58 am. In comparison, the S&P BSE Sensex was up 0.70 per cent at 50,748 points. In the past one month, the stock of state-owned general insurance company has rallied 62 per cent on reports that the government is considering privatisation of United India Insurance and General Insurance Corporation. The benchmark index was down 2.5 per cent during the same period.
Shares of two listed state-owned insurance companies, New India Assurance Company (Rs 164.20) and General Insurance Corporation of India or GIC Re (Rs 170.90), were locked in the upper circuit of 20 per cent on the BSE on Thursday on report that the government is considering privatisation of United India Insurance and General Insurance Corporation.
As on December 31, 2020, the government held 85.78 per cent stake in GIC RE, and 85.44 per cent in the New India Assurance Company, the shareholding pattern data shows.
GIC Re is the largest reinsurer in the domestic reinsurance market in India and leads most of the domestic companies treaty programmes and facultative placements. The New India Assurance Company, meanwhile, is the largest general insurance company in India.
The finance ministry and Niti Aayog will together finalise whether the general insurer will be considered for privatisation, a senior government official said.