Govt to sell up to 6.5% stake in LIC to raise Rs 31K crore

The Centre will sell up to a 6.5% stake in LIC through an Offer for Sale at a floor price of Rs 382 per share, aiming to raise Rs 31,400 crore and meet public shareholding milestones ahead of schedule.

Written by FE Bureau

Updated: August 4, 2026 05:02 IST

The OFS floor price is at a 10% discount to LIC's closing price of Rs 424.35 on the BSE on Monday.

The Centre will sell up to a 6.5% stake in state-run insurance behemoth Life Insurance Corporation (LIC) on Tuesday-Wednesday to raise around Rs 31,400 crore at a floor price of Rs 382 per share.

“Offer for Sale in LIC opens tomorrow for non-retail investors. Retail investors can bid on Wednesday,” the Department of Investment and Public Asset Management (DIPAM) said in a post on X.

“The government offers to disinvest a 2.5% equity stake, with an additional 4% as a greenshoe option. The floor price has been fixed at Rs 382 per share. This will help achieve minimum public shareholding (MPS) milestones ahead of schedule,” DIPAM said. In total, the government is offering to sell 82.22 crore shares including greenshoe option.

The OFS floor price is at a 10% discount to LIC’s closing price of Rs 424.35 on the BSE on Monday.

The OFS follows LIC’s recent issuance of bonus shares in a 1:1 ratio, which made the offer more affordable for a larger section of investors by lowering the per-share price.

This article was first uploaded on August three, twenty twenty-six, at forty-six minutes past eleven in the night.