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LIC disinvestment draws ₹36,400 crore in bids ahead of retail OFS
The government has exercised a green shoe option after institutional bids valued at ₹36,400 crore, and retail bidding opens 5 August with a ₹382 floor price.
LiveMint reports that institutional investors have over-subscribed the government’s 6.5% disinvestment in Life Insurance Corporation of India (LIC), bidding a total of ₹36,400 crore on 4 August.
The OFS opens for retail investors on 5 August at a floor price of ₹382 per share. According to LiveMint, the institutional bids were for more than 94.45 crore shares at an indicative ₹383.84 per share, and the government decided to use a green shoe option given the demand.
Shares of LIC fell 7.86% to close at ₹391 on the BSE, putting its market capitalization at ₹4.95 lakh crore, the outlet added. The green shoe option allows the government to raise more funds than initially planned if demand stays strong.
LiveMint also notes that the sale of 6.5% via the OFS is expected to raise about ₹31,000 crore at the floor price and is intended to help LIC meet the minimum 10% public shareholding requirement set by SEBI ahead of its 16 May 2027 deadline. SEBI requires LIC to achieve the public shareholding level by that date, while the central government currently holds a 96.5% stake.