The non-retail portion of state-owned Life Insurance Corporation of India's (LIC) offer for sale (OFS) was fully subscribed 1.66 times in the afternoon on Tuesday, the first day of bidding for institutional investors, according to BSE data.
Investors bid for 47.27 crore shares against the shares reserved for the non-retail category during the bidding window. The retail portion will open on Wednesday, August 5, LIC announced.
The government on Monday declared plans to sell a 2.5% equity stake in LIC through the base offer, with an option to sell an additional 4% under the green shoe option. The OFS floor price has been fixed at Rs 382 per share, representing an around 11% discount to the stock's previous closing price of Rs 428.50 on the NSE. Following the announcement, LIC crashed 9% to Rs 390 per share.
If the green shoe option is fully exercised, the OFS will comprise 82 crore shares with a total value of nearly Rs 31,410 crore at the floor price. The issue opened for non-retail investors on August 4, while retail investors will be able to bid on August 5.
The stake sale is the latest in the government's divestment programme after recent share sales in public sector companies including Coal India, NHPC and NLC India.
"The Life Insurance Corporation of India (LIC) is a cornerstone of the nation's financial sector, serving as India's largest life insurer and the country's second largest public sector enterprise by market capitalization. Its institutional eminence is recognised both domestically and globally, with LIC ranked as the fourth most valuable brand in India and the world's third strongest insurance brand.
Furthermore, LIC's exceptional operational scale and market penetration are exemplified by its Guinness World Record for the most life insurance policies sold within a 24-hour period, reflecting unwavering public trust and unmatched execution capabilities," DIPAM Secretary Arunish Chawla said.
As of June 30, 2026, the government held a 96.5% stake in LIC, according to the company's latest shareholding pattern. More than 20.92 lakh retail shareholders together owned a 1.55% stake in the insurer.
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The OFS is expected to accelerate LIC's progress towards meeting minimum public shareholding requirements. Listed companies are required to maintain a minimum level of public shareholding, and since LIC was listed with the government retaining a dominant stake, the public float needs to increase over time.
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