Indian government to sell 6.5% stake in LIC at ₹382/share, raising ₹31,000 crore

Published Aug 3, 08:05 PM UTC

The Indian government announced it will sell up to a 6.5% stake in Life Insurance Corporation (LIC) at a floor price of ₹382 per share through a two-day offer for sale (OFS) starting August 4, 2026. The sale includes a 2.5% base equity offer with an additional 4% green shoe option. If fully subscribed, the sale of over 82.22 crore shares will raise approximately ₹31,000 crore for the government's disinvestment kitty. The floor price represents a 10% discount over LIC's Monday closing price of ₹424.35 on the BSE. The stake sale will help LIC meet the Securities and Exchange Board of India's (Sebi) minimum public shareholding requirement of 10% ahead of the May 16, 2027 deadline. Currently, the government holds a 96.5% stake in LIC, having previously sold 3.5% through an IPO in May 2022. So far in the current fiscal year, the government has raised ₹21,082 crore through stake sales in seven public sector undertakings and remittances from SUUTI.