LIC OFS opens tomorrow as govt looks to sell up to 6.5% stake. Check details

The government plans to sell 2.5% equity in LIC, with an additional 4% available as a green shoe option. If fully subscribed, the offer could lead to a total stake sale of up to 6.5%.

The floor price for the OFS has been fixed at Rs 382 per share. The sale is part of the government’s plan to increase public shareholding in LIC after the insurer's listing. LIC remains one of the largest government-owned listed companies, and the public float has to be gradually increased to comply with minimum public shareholding requirements.

Also Read: 200 point-jump in 2 minutes: Why Nifty made a surprising surge before closing bell

Non-retail bidding first

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 recognized 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.

The base issue size is 2.5% of LIC’s equity. The government has also kept an additional 4% as a green shoe option. A green shoe option allows the seller to sell more shares if demand is strong. In this case, if investors show enough interest, the government can sell more than the base 2.5% stake.

LIC is a largecap public sector financial company with a wide retail investor base, and any stake sale in the company is closely tracked by investors.

The stake sale is expected to help LIC move faster toward minimum public shareholding milestones. Listed companies are required to maintain a minimum level of public shareholding. Since LIC was listed with the government holding a large majority stake, the public float has to rise over time.

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price