The Government of India has initiated a two-day Offer for Sale to divest up to a 6.5 per cent equity stake in Life Insurance Corporation of India at a floor price of Rs 382 per share.
NEW DELHI โ August 5, 2026 โ The Government of India opened the retail segment of its Rs 31,000-crore Offer for Sale (OFS) in Life Insurance Corporation of India (LIC) on Wednesday, following strong institutional demand on Day 1 that saw the non-retail category fully oversubscribed (Official Capital Receipt Release).
Offer Structure and Disinvestment Targets
The Department of Investment and Public Asset Management (DIPAM), under the Ministry of Finance, has set the base offer at 3.5 per cent equity with a green-shoe option to sell an additional 3.0 per cent stake, bringing the total offering to 6.5 per cent of the insurance major’s paid-up capital (Exchange Filing).
At the floor price of Rs 382 per share, the transaction represents one of the largest capital receipt mobilization programmes for the central government in the current financial year.
Institutional Response and Retail Bidding
Institutional buyers submitted bids worth over Rs 35,000 crore on Tuesday, prompting the government to exercise the oversubscription option to allocate additional equity shares (Institutional Bidding Summary).
Retail investors and eligible LIC employees bidding on Wednesday are entitled to a discount of Rs 10 per share off the floor price, according to official transaction notices (Retail Bidding Notice).
Regulatory Compliance and Minimum Public Shareholding
The primary objective of the stake sale is to progress towards compliance with the Securities and Exchange Board of India (SEBI) Minimum Public Shareholding (MPS) norms for listed public sector enterprises.
Prior to the OFS, the central government held a 96.5 per cent equity stake in LIC following its initial public offering in May 2022.
Proceeds from the transaction will directly credit to the central government’s disinvestment receipts account, aiding fiscal deficit management for FY 2026-27.