India sells 6.5% stake in LIC via OFS to raise ~₹31,000 crore

Published Aug 5, 11:09 AM UTC

The Government of India is selling a 6.5% stake in Life Insurance Corporation of India (LIC) through an Offer for Sale (OFS) to comply with SEBI's minimum public shareholding norms and to raise approximately ₹31,000 crore toward its FY27 disinvestment target of ₹80,000 crore. The two-day OFS opened on August 4, 2026, with a floor price of ₹382 per share, a 10% discount to the previous closing price. The sale includes a 2.5% base offer and a 4% green shoe option. The move follows LIC's 1:1 bonus share issuance earlier in 2026. Despite losing market share to private insurers, LIC remains India's leading life insurer with over 56% market share in FY26. The government's stake will reduce from 96.5% to 90%, meeting SEBI's revised May 2027 deadline. Retail investors were allowed to bid on the second day. The article notes that while the timing may be debated, investor interest remains strong.