The central government announced an Offer for Sale (OFS) of up to 6.5% of Life Insurance Corporation (LIC) shares, fixing a floor price of ₹382 per share. The move aims to meet SEBI's public shareholding norms before the 2027 deadline.

Key Takeaways

  • Government to sell up to 6.5% of LIC equity
  • Floor price set at ₹382 per share
  • Goal: comply with SEBI's minimum public shareholding requirements

New Delhi – The Centre on Monday launched an Offer for Sale (OFS) of up to 6.5% stake in Life Insurance Corporation of India (LIC), marking the first major divestment since the insurer’s landmark IPO in 2022.

The offer comprises a base sale of up to 2% equity, with an oversubscription option for an additional 4.5% if demand materialises. In total, roughly 41.11 crore shares could be offered, potentially raising about ₹31,410 crore.

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The primary objective is to help LIC meet SEBI’s minimum public shareholding (MPS) norms ahead of the May 2027 deadline. Currently, public shareholding sits at around 3.5%; a full 6.5% sale would push it to 10%.

Historical Background

LIC listed on Indian stock exchanges in May 2022 after the government diluted a 3.5% stake through one of the country’s largest IPOs. That offering introduced the insurer to public markets and boosted its free‑float. This new sale continues that trajectory.

Why This Matters

BozokMedia analysis shows that the transaction aligns with the government’s FY27 divestment target of ₹80,000 crore, already generating roughly ₹21,200 crore this fiscal year from other PSUs. Increased liquidity may also attract broader investor participation.

"This OFS will help achieve MPS milestones ahead of schedule," DIPAM Secretary Arunish Chawla said.
Did You Know?: LIC’s 2022 IPO raised approximately ₹12,000 crore, making it one of the biggest public offerings in India’s history.

Frequently Asked Questions

Q1: When does the OFS open?
A: Non‑retail investors can bid on August 4, 2026, while retail investors and eligible employees bid on August 5, 2026.

Q2: What discount do retail investors receive?
A: Retail investors and eligible employees will get a ₹15 per share discount on the discovery price.