The centre announced that it will be divesting up to 6.5% stake in in Life Insurance Corporation of India (LIC) via an offer for sale (OFS) for investors, according to an 'X' post from the Secretary, Department of Investment and Public Asset Management on Monday.
The OFS will be opening for bidding on Tuesday for non-retail investors and Wednesday for retail investors. The government offered to disinvest 2.5% equity with an additional 4% as a green shoe option, as per the post. The floor price has been fixed as Rs 382 per share.
The government stated that this disvestment will help it achieve minimum public shareholding (MPS) milestones ahead of schedule.
As of June 2026 public shareholding data from the Bombay Stock Exchange (BSE), promoters and promoter groups hold 96.5% of LIC's shares while public shareholders possess 3.5% of the firm's shares. The centre has relaxed its previous target for the insurance company with it now having to offload 10% of its stake to public by the deadline of May 16, 2027.
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If the green shoe option is exercised the minimum public float requirement will be met.
As per earlier reports, the company also has a target of disinvesting up to 25% of its stake by May 2032.
LIC Share Price Movement
Share price of LIC saw a 0.89% rise to settle at Rs 428.50 at the end of the day's trade, compared to a 1.60% uptick of the NSE Nifty 50.
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