New Delhi: The Government will sell up to a 6.5 percent stake in Life Insurance Corporation of India (LIC) through a two-day Offer for Sale (OFS) at a floor price of Rs 382 per share, with the issue opening for non-retail investors on Tuesday and for retail investors on Wednesday.

If fully subscribed, the sale of over 82.22 crore shares at the floor price is expected to raise about Rs 31,000 crore for the exchequer.

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“Government offers to disinvest 2.5 percent equity with an additional 4 percent as a green shoe option,” Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X.

The floor price is at a 10–11 percent discount to Monday’s closing price of Rs 424.35 on the BSE.

The stake sale will help LIC meet the minimum public shareholding (MPS) requirement mandated by market regulator Sebi ahead of schedule. Sebi had in May 2024 granted LIC an extension till May 16, 2027 to achieve a minimum 10 percent public shareholding.

At present, the government holds a 96.5 percent stake in LIC. The insurer had earlier sold 3.5 percent through its initial public offering (IPO) in May 2022 at a price band of Rs 902–949 per share, raising about Rs 21,000 crore.

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LIC currently has a market capitalisation of over Rs 5.36 lakh crore. Its shares settled at Rs 424.35 on Monday, down 0.12 percent over the previous close on the BSE.

So far in the current fiscal, the government has raised Rs 21,082 crore through stake sales in seven public sector undertakings and remittances from SUUTI (Specified Undertaking of the Unit Trust of India).

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