Government Raises ₹31,552 Crore Through LIC OFS, Meets SEBI Public Shareholding Norm Early

The Centre has successfully raised ₹31,552 crore through its offer for sale (OFS) in the Life Insurance Corporation of India (LIC), making it India's largest public offering to date.

A total of 82.23 crore shares were allocated, with the issue receiving strong demand from both institutional and retail investors.

The transaction has also helped LIC meet the Securities and Exchange Board of India's (SEBI) minimum public shareholding (MPS) requirement of 10% nearly nine months ahead of the May 2027 deadline.

The OFS was launched at a floor price of ₹382 per share. With the completion of the sale, the government's stake in the insurer has come down to 90% from 96.5%.

LIC shares ended Wednesday's trading session 0.54% higher at ₹393.40 on the National Stock Exchange (NSE). At 10:43 AM today, the stock was trading at ₹388.71, down 1.09%.

What Made The LIC OFS A Milestone?

Announcing the successful completion of the OFS, Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said the issue was oversubscribed on both days. The government also exercised its full greenshoe option after the institutional portion was subscribed 3.32 times the base issue size.

The Centre had initially offered a 2.5% stake in LIC, along with an option to sell an additional 4%, taking the total offer size to 6.5% of the company's equity. The sale attracted strong participation from investors across categories.

Chawla thanked investors for their response, saying the successful issue reflected confidence in LIC and the government's disinvestment programme. The OFS opened for institutional investors on Tuesday, followed by the retail segment on Wednesday.

Disinvestment Collections Receive A Major Boost

The government stake sale in LIC has significantly strengthened the Centre's disinvestment receipts for the current financial year. With the ₹31,552 crore raised through the OFS, total collections now stand close to ₹59,000 crore against the budget target of ₹80,000 crore under miscellaneous capital receipts.

Before this transaction, the government had already mobilised funds through stake sales in public sector undertakings and remittances from the Specified Undertaking of the Unit Trust of India (SUUTI).

What Does This Mean For LIC?

The OFS has taken LIC shareholding in public hands to 10%, helping the insurer meet SEBI's listing norms well ahead of the regulatory deadline. It also marks another step in the government's plan to broaden retail and institutional ownership while unlocking value from public sector enterprises.

As of the June quarter, LIC had around 21 lakh small retail shareholders, who collectively held about 1.5% of the company's equity. According to earlier reports, the government has also assured stakeholders that it does not plan any further stake dilution in LIC over the next two to three years following this OFS.

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