LIC shares plunge 8% after Indian government sells 6.5% stake at 10% discount

Published Aug 8, 04:42 PM UTC

Shares of Life Insurance Corporation (LIC) fell nearly 8% on the BSE, closing at a two-month low of ₹391 per share, after the Indian government sold a 6.5% stake in the insurer at a 10% discount. The offer for sale (OFS) had a floor price of ₹382 per share, below the previous close of ₹428.5. The sale, which opened for non-retail investors on August 4, 2026, saw over 74 crore shares sold at the floor price, raising approximately ₹28,000 crore. Retail subscription, earmarked at 10% of the total stake, opened on August 5. The OFS comes four years after LIC's IPO, which raised ₹21,000 crore for a 3.5% stake.