Govt to sell up to 6.5% in LIC at ₹382/share; to add ₹31k crore to disinvestment kitty
The Indian government plans to sell a 6.5% stake in the Life Insurance Corporation (LIC) through an offer for sale to raise approximately ₹31,000 crore. This move is designed to help the state-owned insurer meet regulatory public shareholding requirements ahead of the 2027 deadline.
Why it matters
This divestment is a significant fiscal move for the Indian government to bolster its disinvestment revenue while aligning a major public sector entity with market regulations.
The government will sell up to a 6.5% stake in Life Insurance Corporation (LIC) at a floor price of ₹382/share through a two-day offer for sale (OFS) beginning on Tuesday (August 4, 2026).
The issue opens for non-retail investors on Tuesday (August 4) and for retail investors on Wednesday (August 5).
If fully subscribed, the sale of over 82.22 crore shares or a 6.5% stake at the given floor price will fetch about ₹31,000 crore to the disinvestment kitty.
"Government offers to disinvest 2.5% equity with an additional 4% as a green shoe option," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X.
The floor price is at a 10% discount over Monday's closing price of LIC shares of ₹424.35 on the BSE.
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