The Centre’s 6.5% offer for sale (OFS) in Life Insurance Corporation of India (LIC) has become India’s largest public offering, raising a record ₹31,552 crore after attracting strong demand from both retail and institutional investors. The issue was oversubscribed over the two-day bidding period, allowing the government to fully exercise its greenshoe option. The transaction also enabled LIC to achieve the regulatory milestone of 10% public shareholding, well ahead of SEBI’s May 2027 deadline, marking a significant step in the government’s ongoing divestment programme.
Metric
Details
Total amount raised
₹31,552 crore
Offer type
Offer for Sale (OFS)
Total stake sold
6.5%
Base offer
2.5%
Greenshoe option
4.0%
Equity shares allotted
82.23 crore shares
Public shareholding after OFS
10%
Government stake before OFS
96.5%
Timeline
Event
May 2022
LIC IPO raised around ₹21,000 crore at ₹902–₹949 per share
April 2026
LIC board approved a 1:1 bonus issue
August 4, 2026
OFS opened for non-retail investors
August 5, 2026
OFS opened for retail investors; issue closed oversubscribed
August 5, 2026
Government confirmed full greenshoe exercise and ₹31,552 crore fundraising
Comparison of LIC Fundraising
2022 IPO
2026 OFS
Amount raised
~₹21,000 crore
₹31,552 crore
Stake sold
3.5%
6.5%
Public shareholding after issue
3.5%
10%
Significance
India’s largest IPO (at the time)
India’s largest public offering
Why the OFS Matters
Impact
Oversubscription
Strong demand from retail and institutional investors
Full greenshoe exercise
Increased issue size to 6.5%
SEBI compliance
LIC reached the 10% minimum public shareholding milestone ahead of the May 2027 deadline
