Government to sell up to 6.5% stake in LIC, may mop up Rs 31k cr
The Indian government is launching an offer for sale (OFS) to divest a 6.5% stake in the Life Insurance Corporation (LIC) to meet public shareholding requirements. This move is expected to raise approximately Rs 31,400 crore, significantly boosting the government's disinvestment targets.
Why it matters
This divestment is a major financial event for India's capital markets and is crucial for the government's fiscal management goals.
MUMBAI/NEW DELHI: The govt is selling up to 6.5% in LIC, currently worth nearly Rs 35,000 crore ($3.7 billion) through the offer for sale (OFS) route that will be launched on Tuesday and close on Wednesday. The base offer is for 2.5% of the life insurance major’s total equity capital with a green shoe option for another 4%, the insurance giant said in a disclosure to the exchanges.The shares are being offered at a base price of Rs 382 per share, a 10% discount to the stock’s Monday close at Rs 424 on BSE. If the 6.5% stake that the govt is offering is fully sold through the offer, the govt would get about Rs 31,400 crore.
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