The floor price is at a 10% discount over Monday’s closing price of LIC shares of ₹424.35 on the BSE. LIC said its trading window will remain closed until August 8, 2026.
If fully subscribed, the sale of over 82.22 crore shares or a 6.5% stake at the given floor price will fetch about ₹31,000 crore to the disinvestment kitty.
The Department of Investment and Public Asset Management (DIPAM) said the OFS comprises a base offer of 2.5% of LIC’s equity, along with an additional 4% green shoe option in case of oversubscription.
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The OFS will open for non-retail investors on Tuesday, while retail investors can bid on Wednesday. DIPAM Secretary Arunish Chawla said the stake sale will help the government achieve minimum public shareholding (MPS) milestones ahead of schedule.
It had earlier sold 3.5% through an initial public offering (IPO) in May 2022 at a price band of ₹902-949 per share, raising about Rs 21,000 crore. LIC currently has a market capitalisation of over ₹5.36 lakh crore. LIC shares settled at ₹424.35 on Monday, down 0.12 per cent over the previous close on BSE.
So far in the current fiscal, the government has mopped up Rs 21,082 crore through stake sale in seven public sector undertakings and remittances from SUUTI (Specified Undertaking of the Unit Trust of India).
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The Government of India currently holds a 96.5% stake in Life Insurance Corporation of India (LIC). Following the OFS, its shareholding is expected to reduce to 90%.
The Securities and Exchange Board of India (SEBI) had granted LIC time until May 2027 to bring down the government’s stake to 90% to comply with the minimum public shareholding (MPS) requirement.
The proposed stake sale is part of the government’s ongoing disinvestment programme aimed at raising resources through OFSs in public sector undertakings (PSUs).
The government’s recent OFSs have witnessed strong participation from both institutional and retail investors. Most of the issues were offered at attractive discounts to the previous day’s closing price, resulting in robust demand.
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Shares of Life Insurance Corporation of India ended at ₹424.35, down by ₹0.50, or 0.12%, on the BSE.
First Published: Aug 3, 2026 8:48 PM IST
