LIC dips 8% as government sells stake at 10% discount
LIC shares fell by 8% after the Indian government sold a 6.5% stake in the insurer at a 10% discount. The offer for sale attracted significant institutional interest, with retail subscription scheduled to follow.
Why it matters
The stake sale represents a major divestment move by the government, impacting market valuation and investor sentiment for a key public sector entity.
Investors sold Life Insurance Corporation (LIC) pulling it down by almost 8% in a session on the BSE, closing at more than a two-month low of ₹391/share after the government sold its stake at a lower price.
The stock opened with investor optimism and hit ₹400/apiece before steadily sliding and reaching the day’s close.
The government sold 6.5% stake in LIC at a discount of 10% . LIC’s offer for sale consisted of a base offer of up to 2% equity stake in the insurer with an option to sell an additional 4.5% stake.
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