- Government launches the LIC OFS for up to 6.5% stake.
- OFS subscribed 3.32x on day one, indicating strong demand from investors.
- Government exercises the greenshoe option of 4% due to strong demand.
- Retail bidding opens Wednesday, allowing retail investors to participate.
The Life Insurance Corporation's (LIC) offer for sale (OFS) received an overwhelming response, being oversubscribed 3.32 times on its first day, August 4.
In response to this strong demand, the government has exercised a 4% greenshoe option, increasing the total divestment to 6.5%.13
The total OFS size now stands at 82,22,49,701 equity shares.
Retail investors can bid starting Wednesday at an effective price of ₹373.10 per share, after a ₹10 discount, while non-retail investors will pay ₹383.10.
DIPAM Secretary noted, "This enthusiastic participation reflects robust investor confidence and the depth of India's capital markets."
Of the total offer size, 10% is reserved for retail investors, with additional shares allocated for eligible LIC employees.
Shares of LIC closed at ₹391 on the BSE, down 7.86%.
So far this fiscal year, the government has raised ₹21,082 crore through stake sales in public sector undertakings.
Overall, the OFS's success indicates a positive outlook for LIC and the broader market.
“The government raised the total OFS size to 82.22 crore shares, or 6.5% of LIC's paid-up capital, by exercising the 4% greenshoe on top of the 2.5% base offer. Retail investors and eligible employees can bid at ₹373.10 per share, a ₹10 discount to the ₹383.10 non-retail cut-off.”
