The Government had cleared dilution of 25% stake in public sector general insurance companies — New India Assurance Company, United India, Oriental and National Insurance apart from re-insurer GIC Re — to help them raise funds and also increase public visibility.
The decision to reduce stake was announced in the budget and the government decided to give a go-ahead for diluting its stake, which will include fresh issue of shares — which will expand capital base — as well as offer for sale, resulting in disinvestment of government equity.
