GIC, PSU insurers axed from UTI Bank offer

GIC, PSU insurers axed from UTI Bank offer

BS Reporter / Mumbai July 21, 2007

The General Insurance Corporation (GIC), the country's only reinsurer, and the four government-owned general insurance companies, New India Assurance, Oriental Insurance, United India Insurance and National Insurance, will not be able to participate in the upcoming preferential offer being made by UTI Bank to its promoter shareholders.

A UTI Bank official said these companies had sold some shares of the bank after the extraordinary general meeting on June 25, which passed a resolution to make a preferential offer to its promoter shareholders.

Guidelines framed by the Securities & Exchange Board of India say that any shareholder that has sold shares six months prior to the date of a preferential offer cannot participate in the offer.