Government Raises ₹31,552 Crore Through LIC OFS, Public Shareholding Reaches 10% Ahead Of Deadline

New Delhi: Shares of Life Insurance Corporation of India (LIC) fell more than 1 per cent in early trade on Thursday after the government successfully raised Rs 31,552 crore through its Offer for Sale (OFS). The share price was trading at Rs 387.25 on the NSE during the morning session.

Government Meets Public Shareholding Target

The government completed the OFS by fully using the green shoe option after receiving strong demand from investors. With this, LIC's public shareholding has increased to 10 per cent, helping the insurer meet the Securities and Exchange Board of India (SEBI)'s minimum public shareholding requirement before the deadline.

Strong Response From Investors

The Department of Investment and Public Asset Management (DIPAM) said the OFS received an overwhelming response from both retail and institutional investors. According to DIPAM, a total of 82.23 crore shares were allocated during the two-day offer.

The department said the issue raised Rs 31,552 crore, making it the largest public offering in India's capital markets in terms of issue size.

Green Shoe Option Fully Used

The government had initially planned to sell a 2.5 per cent stake in LIC. It also kept a green shoe option to sell up to an additional 4 per cent stake if investor demand remained strong.

The floor price for the OFS was fixed at Rs 382 per share. Strong demand allowed the government to fully exercise the green shoe option and increase the size of the offer.

LIC Shares Under Pressure

Despite the successful OFS, LIC shares traded lower on Thursday, falling over 1 per cent during early trading.

LIC was listed on the stock exchanges in May 2022 after the government sold part of its stake through an initial public offering (IPO). The latest OFS further reduces the Centre's holding while bringing the insurer in line with SEBI's public shareholding norms.