LIC OFS opens: Govt to sell up to 6.5% stake; check floor price, retail bidding; shares tumble 9%
The Indian government has launched a 6.5% stake sale in the Life Insurance Corporation (LIC) through an Offer for Sale (OFS) at a floor price of ₹382 per share. Following the announcement, LIC shares experienced a significant decline of nearly 9%.
Why it matters
This disinvestment is a major move for the Indian government to meet public shareholding requirements and raise capital for its fiscal objectives.
The government on Tuesday announced that it will sell up to a 6.5% stake in LIC at a floor price of ₹382 per share through a two-day OFS. The issue opens for non-retail investors on Tuesday (August 4), while retail investors can bid on Wednesday (August 5). The long-awaited offer for sale (OFS) in Life Insurance Corporation (LIC) has finally opened, with the government launching a stake sale of up to 6.5% in the country's largest insurer.
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The government on Tuesday announced that it will sell up to a 6.5% stake in LIC at a floor price of ₹382 per share through a two-day OFS. The issue opens for non-retail investors on Tuesday (August 4), while retail investors can bid on Wednesday (August 5).
Shares of the company tumbled as much as 8.86% to ₹390.50 apiece on the NSE in the early trade following the OFS launch.
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