New Delhi: In a significant development, the share price of Life Insurance Corporation of India (LIC) trumbled as much as 8.28 percent on National Stock Exchange in Tuesday’s trading session after the government’s Offer for Sale (OFS) opened for subscription to non-retail investors.
It is important to note that the shares of LIC opened at Rs 392 apiece today, as compared to previous close of Rs 428.50 on Monday. The stock touched an intraday low of Rs 390.50 on 4 August.
On August 4, the Modi government announced an offer-for-sale (OFS) of a 2.5 percent stake in Life Insurance Corporation of India (LIC), with an option to offload an additional 4 percent through the green shoe option. The OFS will open for non-retail investors on Tuesday, while retail investors can place their bids on Wednesday.
According to the Department of Investment and Public Asset Management (DIPAM), the floor price for the OFS has been set at Rs 382 per share.
“Offer for Sale in LIC opens tomorrow for non-retail investors. Retail investors can bid on Wednesday. The Government offers to disinvest 2.5% of equity, with an additional 4% as a green shoe option. The floor price has been fixed at ₹382 per share. This will help achieve MPS milestones ahead of schedule,” the Department of Investment and Public Asset Management (DIPAM) Secretary said in a post on social media platform X.
Govt to sell up to 6.5 percent in LIC at Rs 382 per share; to add Rs 31k cr to disinvestment kitty
The government will sell up to a 6.5 percent stake in Life Insurance Corporation (LIC) at a floor price of Rs 382/share through a two-day offer for sale (OFS) beginning Tuesday. The issue opens for non-retail investors on Tuesday and for retail investors on Wednesday.
If fully subscribed, the sale of over 82.22 crore shares, or a 6.5 percent stake at the given floor price, will fetch about Rs 31,000 crore to the disinvestment kitty. “Government offers to disinvest 2.
5 per cent equity with an additional 4 percent as a green shoe option,” Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X.
The floor price is at a 10 per cent discount over Monday’s closing price of LIC shares of Rs 424.
35 on the BSE. The stake sale will help LIC achieve the minimum public shareholding requirement mandated by market regulator Sebi ahead of schedule.
Sebi had given LIC time till May 16, 2027, to achieve a minimum 10 per cent public shareholding. At present, the government holds a 96.5 percent stake in LIC.
It had earlier sold 3.5 per cent through an initial public offering (IPO) in May 2022 at a price band of Rs 902-949 per share, raising about Rs 21,000 crore. LIC currently has a market capitalisation of over Rs 5.36 lakh crore. LIC shares settled at Rs 424. 35 on Monday, down 0.12 per cent over the previous close on BSE.