The Government has raised Rs 31,552 crore through the Offer for Sale (OFS) in Life Insurance Corporation of India (LIC), with the issue receiving an overwhelming response from both retail and institutional investors.
According to a post by the Department of Investment and Public Asset Management (DIPAM), the offer was oversubscribed on both days, prompting the Government to exercise its entire green shoe option.
LIC Achieves 10% Public Shareholding
With the successful completion of the OFS, LIC’s public shareholding has increased to 10 percent, enabling the insurer to meet the Minimum Public Shareholding (MPS) requirement ahead of the regulatory deadline.
According to DIPAM, a total of 82,23,33,558 shares were allocated under the offer, making it India’s largest public offering by amount raised.
“Offer for Sale in the Life Insurance Corporation of India (LIC) closed with an overwhelming response from both retail and institutional investors. The issue was oversubscribed on both days, and the Government exercised its entire green shoe option. With this, the public ownership of LIC has increased to 10%, and it has achieved this critical milestone ahead of schedule. A total of 82,23,33,558 shares have been allocated for an amount of Rs. 31,552 crores, making it India’s largest public offering ever. We thank all the investors for their enthusiastic participation and reposing their faith in us,” the DIPAM Secretary said in a post on X.
Government Exercised Full Green Shoe Option
The Government had initially announced the sale of a 2.5 percent equity stake in LIC through the OFS, along with an additional 4 percent green shoe option.
The floor price for the issue was fixed at Rs 382 per share. The OFS opened first for non-retail investors, followed by the retail investor category on the next day. Strong demand across both investor segments enabled the Government to exercise the entire green shoe option, taking the total size of the sale to its maximum level.
Key Milestone in Disinvestment Programme
The successful completion of the OFS marks a significant milestone in the Government’s disinvestment programme. Apart from helping the Government mobilise Rs 31,552 crore, the transaction also enabled LIC to comply with the minimum public shareholding norms well ahead of schedule.
On Thursday, LIC shares closed at Rs 393 on the National Stock Exchange (NSE), gaining 0.43 percent during the trading session.
