Institutional investors oversubscribe the government’s 6.5% stake sale in LIC with bids worth ₹36,400 crore ahead of the retail subscription.
Key Highlights
- Institutional investors oversubscribe LIC OFS.
- Bids worth around ₹36,400 crore received.
- Government selling 6.5% stake in LIC.
- Retail investors can bid from Wednesday.
- Stake sale helps LIC meet SEBI public shareholding norms.
The government’s Offer for Sale (OFS) in Life Insurance Corporation of India (LIC) witnessed strong participation from institutional investors, who oversubscribed the issue on the first day with bids worth nearly ₹36,400 crore.
The Centre is selling up to 6.5% of its stake in LIC through a two-day OFS, comprising a base issue of 2.5% and a green shoe option of 4%.
Institutional investors placed bids for over 94.45 crore shares at an indicative price of ₹383.84 per share, comfortably exceeding the shares on offer.
Retail investors will be able to participate in the OFS from Wednesday.
The floor price has been fixed at ₹382 per share, representing around a 10% discount to the previous market closing price.
The stake sale is expected to raise nearly ₹31,000 crore and will help LIC achieve SEBI’s minimum public shareholding requirement ahead of the May 2027 deadline.
Following the announcement, LIC shares closed 7.86% lower at ₹391 on the BSE.
