LIC OFS Sees 66% Institutional Subscription

The Life Insurance Corporation of India (LIC) Offer-for-Sale (OFS) has seen a strong response from institutional investors, with 66.10% of the reserved shares being subscribed by noon on Tuesday. The government has offered over 28.46 crore LIC shares to institutional buyers at a floor price of ₹382 per share.

Institutional investors have placed bids for over 18.81 crore shares, representing 66.10% of the reserved portion. The indicative bidding price stood at ₹382.07 per share. Bidding for institutional investors will remain open until 3:30 pm on Tuesday, while retail investors will be allowed to submit their bids on Wednesday.

The government plans to sell up to a 6.5% stake in LIC, equal to over 82.22 crore shares, through the OFS. The offer includes a base issue of over 31.62 crore shares, representing a 2.5% stake, and a greenshoe option covering 50.60 crore shares, or another 4% stake. If the entire offer is subscribed at the floor price, the government could raise around ₹31,000 crore for its disinvestment programme.

The floor price of ₹382 per share is nearly 10% lower than LIC's Monday closing price of ₹424.35 on the BSE. LIC shares fell 7.03% to ₹394.50 during afternoon trading on Tuesday, with the insurer's market value standing at over ₹4.98 lakh crore.

The stake sale will help LIC meet the minimum public shareholding requirement set by market regulator Sebi before the deadline. Sebi has given LIC until May 16, 2027, to increase its public shareholding to at least 10%. The government currently owns a 96.5% stake in the insurer.

In May 2022, the government sold a 3.5% stake in LIC through an initial public offering, raising about ₹21,000 crore. The IPO was priced between ₹902 and ₹949 per share. LIC's board also approved a 1:1 bonus share issue in April 2026.

During the current financial year, the government has collected ₹21,082 crore through stake sales in seven public sector companies and remittances from SUUTI. The successful completion of the LIC OFS will help the government achieve its disinvestment target and raise funds for various development projects.

The LIC OFS is a significant development in the Indian stock market, with the government aiming to raise a substantial amount of funds through the stake sale. The response from institutional investors has been strong, and the offer is expected to be fully subscribed. The stake sale will also help increase the public shareholding in LIC, making it more compliant with regulatory requirements.

In conclusion, the LIC OFS has seen a strong response from institutional investors, with the government aiming to raise ₹31,000 crore through the stake sale. The offer is expected to be fully subscribed, and the funds raised will be used for various development projects. The stake sale will also help increase the public shareholding in LIC, making it more compliant with regulatory requirements.

The successful completion of the LIC OFS will have a positive impact on the Indian stock market, with the government's disinvestment programme gaining momentum. The funds raised will be used to finance various development projects, which will have a positive impact on the economy. The increase in public shareholding in LIC will also make the company more accountable to its shareholders, leading to better governance and management.

Overall, the LIC OFS is a significant development in the Indian stock market, with the government aiming to raise a substantial amount of funds through the stake sale. The response from institutional investors has been strong, and the offer is expected to be fully subscribed. The stake sale will also help increase the public shareholding in LIC, making it more compliant with regulatory requirements.