The government's holding in Life Insurance Corporation of India has fallen to 90% after it sold a 6.5% stake in the insurer, taking public shareholding to 10% and allowing LIC to meet the minimum public shareholding requirement ahead of its May 16, 2027 deadline.
The government raised Rs 31,552 crore from the offer for sale, which closed on Wednesday, Aug. 5. It sold 82.23 crore shares after exercising the full greenshoe option.
"With this the public ownership of LIC has increased to 10% and it has achieved this critical milestone ahead of schedule," Department of Investment and Public Asset Management Secretary Arunish Chawla said in a post on X last week after the offer closed.
The government initially offered 31.6 crore shares, equivalent to a 2.5% stake, at a floor price of Rs 382 a share. Strong institutional demand on the first day led the government to exercise the greenshoe option for another 4%, taking the total stake offered to 6.5%.
"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.
Institutional Demand Outpaces Retail Bids
Institutional investors bid for about 94.45 crore shares on Aug. 4 against roughly 74 crore shares available to the general category, according to the OFS data. The portion was subscribed about 1.28 times.
Retail investors were offered about 8.22 crore shares on the second day and bid for around 5.76 crore shares. The retail portion was subscribed 0.70 times.
The allotment price was Rs 383.10 a share for the general category and Rs 373.10 for retail investors. The floor price was Rs 382.
A total of 82,23,33,558 shares were allotted for Rs 31,552 crore, Chawla said.
The latest stake 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.
The Rs 31,552 crore raised through the OFS is higher than the amount raised through the IPO, making the latest transaction the larger government stake sale in LIC in value terms.
"We thank all the investors for their enthusiastic participation and reposing their faith in us," Chawla said.
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