LIC OFS: Govt To Divest Up To 6.5% Stake In State-Run Insurer; Floor Price Fixed At ₹382
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The Centre has launched an OFS to sell up to 6.5% of its stake in LIC, with a floor price of ₹382 per share. The stake sale aims to increase public shareholding and move the insurer closer to its regulatory target.
Investors in Life Insurance Corporation of India (LIC) will get another opportunity to buy shares through an Offer for Sale (OFS) this week. The Centre has decided to reduce its holding in the insurer, with bids opening first for institutional investors and later for retail participants.
The LIC OFS floor price has been set at ₹382 per share. The government will initially place 2.5% of its equity on sale. It has also retained the flexibility to sell another 4% if demand exceeds expectations. The proposed sale was announced by the Department of Investment and Public Asset Management (DIPAM) through a post on X.
When Will The LIC OFS Open?
The bidding process has been divided into two phases.
- Non-retail investors: Tuesday
- Retail investors: Wednesday
The green shoe option allows the government to increase the size of the issue if subscriptions remain strong.
Why Is The Government Selling More LIC Shares?
The latest OFS is part of the government's broader disinvestment programme and will also increase LIC's public shareholding.
Shareholding data available for June 2026 shows that the promoter and promoter group together owned 96.5% of the insurer. Public investors held the remaining 3.5%.
Under the Securities and Exchange Board of India (SEBI) regulations, listed companies are generally required to maintain 25% public shareholding. However, LIC has been given additional time after its listing to gradually comply with the requirement.
The revised roadmap requires the insurer to achieve 10% public shareholding by 16 May 2027. If the entire 6.5% stake is sold through the present OFS, LIC will move much closer to that milestone.
Earlier reports had also indicated that the government plans to reduce its ownership further over the coming years, with a longer-term target of lowering its stake to 75% by May 2032.
LIC Share Price
Ahead of the OFS announcement, LIC shares ended Monday's trading session at ₹428.50, gaining 0.89%. During the same session, the Nifty 50 index advanced 1.60%.
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