LIC OFS Sees 66% Institutional Subscription, Government Aims To Raise ₹31,000 Crore Through Stake Sale
LIC’s OFS received 66.10 percent institutional subscription by noon as the government seeks around Rs 31,000 crore by selling up to a 6.5 percent stake.
LIC’s OFS received 66.10 percent institutional subscription by noon. |
New Delhi: Institutional investors subscribed to 66.10 percent of the shares reserved for them in the Life Insurance Corporation of India (LIC) Offer-for-Sale (OFS) by noon on Tuesday.
The government offered more than 28.46 crore LIC shares to institutional buyers at a floor price of Rs 382 per share.
Strong Bidding
Institutional investors placed bids for over 18.81 crore shares, representing 66.10 percent of the reserved portion. The indicative bidding price stood at Rs 382.07 per share.
Bidding for institutional investors will remain open until 3:30 pm on Tuesday. Retail investors will be allowed to submit their bids on Wednesday.
Through the OFS, the government plans to sell up to a 6.5 percent stake in LIC, equal to more than 82.22 crore shares.
Rs 31,000-Crore Target
The offer includes a base issue of over 31.62 crore shares, representing a 2.5 percent stake. It also has a greenshoe option covering 50.60 crore shares, or another 4 percent stake.
If the entire offer is subscribed at the floor price, the government could raise around Rs 31,000 crore for its disinvestment programme.
The floor price is nearly 10 percent lower than LIC’s Monday closing price of Rs 424.35 on the BSE.
ALSO READ
LIC shares fell 7.03 percent to Rs 394.50 during afternoon trading on Tuesday. The insurer’s market value stood at more than Rs 4.98 lakh crore.
Public Shareholding
The stake sale will help LIC meet the minimum public shareholding requirement set by market regulator Sebi before the deadline.
Sebi has given LIC until May 16, 2027, to increase its public shareholding to at least 10 percent. The government currently owns a 96.5 percent stake in the insurer.
ALSO READ
In May 2022, the government sold a 3.5 percent stake in LIC through an initial public offering. The IPO, priced between Rs 902 and Rs 949 per share, raised about Rs 21,000 crore.
LIC’s board also approved a 1:1 bonus share issue in April 2026.
During the current financial year, the government has collected Rs 21,082 crore through stake sales in seven public sector companies and remittances from SUUTI.
RECENT STORIES
-
-
-
-
-