LIC OFS: Shares crash 8% as offer for sale opens for non-retail investors. Details here | Stock Market News
Life Insurance Corporation of India (LIC) share price tumbled as much as 8.28% on NSE in Tuesday's trading session after the government's Offer for Sale (OFS) opened for subscription to non-retail investors.
LIC shares opened at ₹392 apiece today, as compared to previous close of ₹428.50 on Monday. The stock touched an intraday low of ₹390.50 on 4 August.
The government on August 4 announced an offer-for-sale (OFS) of a 2.5% stake in LIC, with an option to offload an additional 4% through the green shoe option. The OFS will open for non-retail investors on Tuesday, while retail investors can place their bids on Wednesday.
According to the Department of Investment and Public Asset Management (DIPAM), the floor price for the OFS has been set at ₹382 per share.
"Offer for Sale in LIC opens tomorrow for non-retail investors. Retail investors can bid on Wednesday. The Government offers to disinvest 2.5% of equity, with an additional 4% as a green shoe option. The floor price has been fixed at ₹382 per share. This will help achieve MPS milestones ahead of schedule," the Department of Investment and Public Asset Management (DIPAM) Secretary said in a post on social media platform X.
The Centre currently owns around 96.5% of LIC. The state-run insurer made its stock market debut in May 2022 through India's largest-ever initial public offering (IPO).
So far in the ongoing financial year, the government has raised ₹21,082 crore through stake sales in seven public sector undertakings (PSUs) and proceeds received from the Specified Undertaking of the Unit Trust of India (SUUTI).
At present, the Government of India owns a 96.5% stake in LIC. The proposed Offer for Sale (OFS) is expected to reduce its holding to 90%.
Earlier, the Securities and Exchange Board of India (SEBI) had extended the deadline until May 2027 for LIC to meet the minimum public shareholding (MPS) norm by bringing down the government's stake to 90%.
The planned OFS is part of the Centre's broader disinvestment strategy to mobilise resources through stake sales in public sector enterprises.
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Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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