The government launched an offer for sale (OFS) of up to 6.5% in Life Insurance Corporation of India (LIC) on August 4, comprising a 2.5% base offer and a 4% greenshoe option, at a floor price of Rs 382 per share — an 11% discount to the previous close. The full offer, worth around Rs 31,400 crore at the floor price, became the largest OFS in Indian market history.
Institutional investors subscribed the base book 3.32 times, bidding over Rs 36,400 crore for more than 94.45 crore shares at an indicative price of Rs 383.84, prompting the government to exercise the full greenshoe. Retail investors were allowed to bid on August 5 with a discount of Rs 10 per share over the final discovered price, making the effective retail price about Rs 372.
DIPAM Secretary Arunish Chawla said the enthusiastic response reflected robust investor confidence, and that the stake sale would help LIC meet SEBI's minimum public shareholding (MPS) norm well ahead of its May 2027 deadline. The government held 96.5% of LIC as of June 30, 2026; a successful closure will lift public shareholding from 3.5% to 10%. LIC shares closed about 8% lower at Rs 391 on BSE on August 4, in line with the discount.
Proceeds take the government's disinvestment receipts for FY27 beyond Rs 50,000 crore against a full-year target of Rs 80,000 crore. LIC's Q1 FY27 results are due on August 6.
Sources: Times of India, Economic Times, Business Today (August 3-5, 2026)