New Delhi, August 6: The Indian government has raised Rs 31,552 crore through the sale of a 6.5 per cent stake in Life Insurance Corporation of India (LIC) under an Offer for Sale (OFS), marking one of the largest public offerings in India’s capital markets.
The two-day OFS witnessed strong demand from institutional and retail investors, resulting in the government exercising its full green shoe option over and above the base offer.
The successful stake sale has helped LIC achieve the required 10 per cent public shareholding level ahead of the regulatory deadline, while also widening investor participation in the country’s largest insurance company.
The strong response to the OFS reflects continued investor interest in LIC and highlights the growing depth of India’s equity markets. The offering attracted participation from a broad range of investors, including institutional buyers and retail shareholders.
However, LIC shares traded lower after the stake sale, with market sentiment impacted by the discounted OFS price and caution ahead of the company’s upcoming earnings announcement. Investors are closely watching LIC’s financial performance, new business growth, margins and future expansion plans.
Market participants said the near-term movement in LIC shares could remain influenced by valuation concerns and profit-booking after the large stake transaction. Over the longer term, increased public shareholding and improved liquidity are expected to support wider investor participation in the stock.
The government’s divestment is part of its broader strategy to unlock value from public sector assets, meet market ownership requirements and strengthen India’s capital market ecosystem.
The LIC stake sale marks a significant milestone in the government’s disinvestment programme and underscores the ability of large public offerings to attract substantial investor interest.