Mumbai: Shares of Life Insurance Corporation of India (LIC) dropped more than 6% in early trades on Tuesday, August 4, 2026, after the government’s Offer for Sale (OFS) to sell up to a 6.5% stake opened. The floor price for the transaction has been set at ₹382 per share, representing a discount of roughly 11% to its closing price on Monday, August 3. The first day of the OFS is reserved for institutional investors with retail investor participation to commence on August 5.
Offer for Sale in LIC opens tomorrow for Non-Retail investors. Retail investors can bid on Wednesday. Government offers to disinvest 2.5% equity with an additional 4% as a green shoe option. Floor price has been fixed as Rs 382 per share. This will help achieve MPS milestones… pic.twitter.com/1OxsaQRWPM
— Secretary, DIPAM (@SecyDIPAM) August 3, 2026
Key Details of the OFS
The disinvestment proceeds are expected to significantly contribute toward the government’s fiscal deficit target for FY27 while meeting the SEBI deadline of meeting the Minimum Public Shareholding (MPS) guidelines by May 2027.
Key parameters of the issue include:
- Base Issue Size: 2.5% stake
- Green Shoe Option: Additional 4.0% stake
- Floor Price: ₹382 per share, fixed at a 11% discount to the previous close.
- Total Issue Size: Expected to raise about ₹31,000 crore if fully subscribed, including the green shoe option.
- Government Shareholding Shift: Reduces the government’s holding in LIC from 96.5% down to 90.0%.
This OFS represents the first major secondary share sale in LIC since its IPO in May 2022. The share prices are expected to fall during these two days, while attracting long-term investments from Domestic Institutional Investors (DIIs) and global funds.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in stocks includes financial risks, and past performance is not indicative of future results. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
