- Initial divestment plan: DIPAM said the government would initially divest a 2.5% stake, with an option to sell an additional 4% under greenshoe.
- OFS size and floor: The Centre announced sale of up to a 6.5% stake in LIC through the OFS route, with a floor price of ₹ 382 per share.
- OFS demand vs retail: The OFS received bids for 187.15 crore shares, resulting in an overall subscription of 227.61% of the retail allocation.
- Final-day outcome: The issue was subscribed 2.27 times at the final day of bidding, with the Centre selling 82.22 crore shares (6.5% stake).
India’s government sold 6.5% of LIC through an OFS, drawing strong demand. The Centre sold a total of 82.22 crore shares for a 6.5% stake, including a base offer of 31.62 crore and an oversubscription option of 50.59 crore. The non-retail portion of 74 crore shares drew bids for 129.48 crore and was booked 1.57x.34
The non-retail clearing price was Rs 383.10 per share, above the floor of Rs 382.
The retail portion of 8.22 crore shares drew bids for 5.76 crore, a 70.14% subscription, and retail investors were allotted shares at Rs 373.10 per share after a discount of Rs 10 to the non-retail clearing price.
Overall, the OFS received bids for 187.15 crore shares, translating to a 227.61% subscription of the retail allocation.5
The floor price was set at Rs 382, about a 10.7% discount to Monday’s close of Rs 428.
"The government offers to disinvest 2.5% equity with an additional 4% as a greenshoe option. The floor price has been fixed at Rs 382 per share. This will help achieve minimum public shareholding (MPS) milestones ahead of schedule," DIPAM said.12
Before the OFS, the Centre held 96.5% in LIC; it will now decline to 90%.
LIC was listed in May 2022 through a Rs 20,500-crore IPO, the largest in India's capital market history.
The government had diluted a 3.5% stake through the issue, although the original plan was to divest at least 5%.
“The non-retail portion was booked 1.57 times, with retail investors getting shares at Rs 373.10 after a Rs 10 discount. DIPAM had offered a 2.5% base stake with a 4% greenshoe option to meet MPS milestones early.”
