The government has launched its long-awaited Offer for Sale (OFS) in Life Insurance Corporation of India (LIC), offering up to a 6.5% stake at a floor price of ₹382 per share. The two-day issue opened for institutional investors on August 4, while retail investors can bid on August 5. The move is aimed at increasing public shareholding, helping LIC meet SEBI’s minimum public shareholding norms ahead of schedule. Following the announcement, LIC shares fell nearly 9% in early trade as investors reacted to the discounted offer price and the large supply of shares entering the market.
LIC OFS at a Glance
Particulars
Details
Stake on offer
Up to 6.5%
Shares on offer
More than 82.22 crore
Floor price
₹382 per share
OFS opens for non-retail investors
August 4, 2026
OFS opens for retail investors
August 5, 2026
Estimated proceeds
Around ₹31,000 crore
Government stake before OFS
96.5%
Market Reaction
Metric
Details
Early trading decline
Up to 8.86%
Intraday low
₹390.50 per share
Reason for decline
Discounted OFS price and increased share supply
Key Risks
Risk
Impact
Large share supply
May keep stock price under pressure in the short term
Discounted OFS price
Could pull market price closer to the offer price
No benefit to LIC balance sheet
Sale proceeds go to the government, not the company
