The government raised Rs 31,552 crore from its stake sale in Life Insurance Corporation of India, making the transaction the country's largest-ever offer for sale.
The OFS, which ended on Wednesday, Aug. 5, saw the government sell 82.23 crore shares after exercising the entire greenshoe option. The sale increased public shareholding in India's largest insurer to 10%, meeting the minimum public shareholding requirement ahead of the deadline.
The government had initially offered 31.6 crore shares, equivalent to a 2.5% stake, at a floor price of Rs 382 apiece. Strong demand from institutional investors on the first day prompted it to exercise the greenshoe option for another 4%, expanding the total stake on offer to 6.5%.
LIC OFS Draws Institutional, Retail Demand
Institutional investors bid for about 94.45 crore shares on Aug. 4 against roughly 74 crore shares offered to the general category, according to the OFS data shared. That translated into demand of about 1.28 times the shares available.
Retail investors were offered about 8.22 crore shares on the second day. They bid for around 5.76 crore shares, or 0.70 times the portion available to them.
The allotment price stood at Rs 383.10 for the general category and Rs 373.10 for retail investors, according to the data shared. The OFS floor price was Rs 382 per share.
A total of 82,23,33,558 shares were eventually allotted for Rs 31,552 crore, Department of Investment and Public Asset Management Secretary Arunish Chawla said in a post on X after the offer closed.
"Offer for Sale in the Life Insurance Corporation of India (LIC) closed with an overwhelming response from both retail and institutional investors," Chawla said.
"The issue was over-subscribed on both days and the Government exercised its entire green shoe option," he added.
Government Meets LIC Public Shareholding Milestone
The transaction takes public ownership of LIC to 10%, a level the government had to reach under the minimum public shareholding requirement. LIC had been given until May 16, 2027, to meet the threshold.
"With this the public ownership of LIC has increased to 10% and it has achieved this critical milestone ahead of schedule," Chawla said.
The latest sale comes four years after LIC's initial public offering, when the government raised about Rs 21,000 crore by selling a 3.5% stake in the insurer.
The Rs 31,552-crore proceeds from the latest transaction exceed the amount raised through LIC's IPO, making the OFS a larger government stake sale in value terms.
"We thank all the investors for their enthusiastic participation and reposing their faith in us," Chawla said.
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