LIC OFS subscribed 3.32x on Day 1; Govt to exercise greenshoe option, retail bidding opens Wednesday
The Indian government's Offer for Sale (OFS) for Life Insurance Corporation (LIC) saw a 3.32x subscription on its first day, prompting the government to exercise a 4% greenshoe option. This increases the total divestment stake from 2.5% to 6.5%.
Why it matters
The strong institutional demand for LIC shares signals investor confidence in the state-owned insurer and helps the government meet its asset monetization targets.
Following the strong response, the government has decided to exercise the greenshoe option of 4%. The Centre had planned to divest a 2.5% stake in the OFS, with an option to exercise the greenshoe option, taking the total divestment to 6.5%. The offer for sale (OFS) by the government in Life Insurance Corporation (LIC) received a bumper response from non-retail investors on Tuesday, August 4, the first day of the issue. BSE data showed that the OFS was subscribed 331.86%, or around 3.32 times.
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Non-retail investors in an OFS include institutional and high-net-worth investors such as mutual funds, insurance companies, and foreign portfolio investors (FPIs).
A look at the key details
| Particulars | Details |
| --------------------------- | ------------------------------------------------------------------------------------------------------------- |
| Company | Life Insurance Corporation of India (LIC) |
| OFS Date (Non-Retail) | August 4, 2026 |
| Floor Price | ₹382 per share |
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