- August 3, 2026
LIC OFS Announced: Govt To Sell Up To 6.5% Stake At Rs 382/Share
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The Centre will sell up to a 6.5% stake in Life Insurance Corporation through a two-day Offer for Sale at a floor price of Rs 382 per share, DIPAM Secretary announced.
The Centre will sell up to a 6.5% stake in Life Insurance Corporation (LIC) through a two-day Offer for Sale at a floor price of Rs 382 per share. (IMAGE: REUTERS)
The Centre on Monday announced the sale of up to a 6.5 per cent stake in Life Insurance Corporation (LIC) through a two-day Offer for Sale (OFS), fixing the floor price at Rs 382 per share—about 10 per cent lower than Monday’s closing price on the BSE.
The issue will open for non-retail investors on Tuesday, while retail investors can bid on Wednesday, according to the Department of Investment and Public Asset Management (DIPAM).
The government will initially offer 2.5 per cent equity, with an option to sell an additional 4 per cent stake under the greenshoe option, DIPAM Secretary Arunish Chawla said in a post on X.
If the entire 6.5 per cent stake—comprising more than 82.22 crore shares—is sold, the government is expected to raise about Rs 31,000 crore through the OFS.
The floor price of Rs 382 per share represents a discount of around 10 per cent to LIC’s Monday closing price of Rs 424.35 on the BSE.
The stake sale is expected to help LIC meet the minimum public shareholding norms prescribed by market regulator Sebi ahead of schedule. Sebi has asked LIC to achieve a minimum 10 per cent public shareholding by May 16, 2027.
The government currently owns 96.5 per cent of LIC. It had earlier sold 3.5 per cent of the insurer through its landmark IPO in May 2022, raising about Rs 21,000 crore.
LIC’s market capitalisation currently stands at more than Rs 5.36 lakh crore. The company’s shares ended Monday’s trade at Rs 424.35, down 0.12 per cent from the previous close.
With this transaction, the Centre’s disinvestment proceeds for the current financial year are set to receive another boost. So far in FY2026-27, it has mobilised Rs 21,082 crore through stake sales in public sector undertakings and remittances from the Specified Undertaking of the Unit Trust of India (SUUTI).
About the Author
Shankhyaneel Sarkar is a chief sub editor at News18. He covers international affairs, where he focuses on breaking news to in-depth analyses. He has over seven years of experience during which he has …Read More
August 03, 2026, 21:06 IST
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