Institutional investors over subscribe LIC OFS, bid ₹36,400 crore, retail offer in 6.5% stake sale begins tomorrow | Stock Market News
“This enthusiastic participation reflects robust investor confidence and the depth of India's capital markets. In view of the exceptional demand, the government has decided to exercise the green shoe option. Retail investors get to bid tomorrow. Make the most of this opportunity!” it declared.
Notably, this move comes four years after the insurance behemoth's initial public offering (IPO), fetched ₹21,000 crore for the Centre, as per a PTI report.
Institutional investors participating in the LIC OFS put in bids for more than 94.45 crore shares, at an indicative price of ₹383.84/share. At the indicative price, the bids are valued at ₹36,400 crore in total, the report added.
Shares of LIC slid 7.86% to close at ₹391 on the BSE. Its market capitalisation stands at ₹4.95 lakh crore.
An “over-allotment” provision, the green shoe option allows a company to raise more funds than initially planned, by issuing additional securities. It is triggered in case of strong investor demand for the stock.
Overall, the provision helps ensure that a company can efficiently manage oversubscription during listing and maintain better price and liquidity stability.
For investors this means more shares on offer and can also thus reduce share price surge or stock price volatility in case of extremes (low or high demand).
At the floor price, the sale of over 82.22 crore shares or a 6.5% stake, is expected fetch about ₹31,000 crore to the Centre's disinvestment kitty, as per the PTI report.
The stake sale will help LIC achieve the MPS requirement mandated by market regulator, the Securities and Exchange Board of India (SEBI) ahead of its 16 May 2027 deadline.
SEBI had given the insurance company time to achieve a minimum 10% public shareholding. At present, the government holds a 96.5% stake in LIC.
Notably, the central government had earlier sold 3.5% in LIC through an IPO in May 2022 at a price band of ₹902-949 per share, raising about ₹21,000 crore, the report added. In April 2026, the LIC board approved a 1:1 bonus issue.
In this fiscal, the central government has so far mopped up ₹21,082 crore through stake sale in seven public sector undertakings (PSUs) and remittances from Specified Undertaking of the Unit Trust of India (SUUTI).
Jocelyn Fernandes is a journalist and editor with nearly 13 years of experience covering the business, corporate, economy and markets beats in news.<br> As chief content producer for around three years at Livemint (Hindustan Times), Jocelyn publishes breaking stories, explainers, features and live blogs on a range of business and economy topics, including the Budget, corporate developments, stock markets, income tax, money and personal finance, cryptocurrency, government policy, impact of US tariffs, international developments and more.<br> Jocelyn's writing philosophy is focused on delivering news in an accurate and accessible format for readers. She thus focuses her news coverage on explainers and FAQs in order to breakdown business, corporate, economic, and policy topics that are of importance to everyday readers.<br> She holds a Bachelors in Mass Media (BMM) and Post Graduate Diploma (PGD) in Journalism and Communication and has previously written for online business and markets news site Moneycontrol (Network18), Business-to-business (B2B) trade publications — the industry magazines Power Today and Solar Today (ASAPP Media), and the national news agency United News of India (UNI).<br> Outside of work, Jocelyn keeps up-to-date with local and international news, enjoys reading fiction books, novels and short stories, and enjoys movies, travelling and art. <br> She can be found on X and LinkedIn, and reached by email: <a href="jocelyn.fernandes@htdigital.in">jocelyn.fernandes@htdigital.in</a> <br> X/ Twitter handle: <a href="https://x.com/scribeJocelyn">@scribeJocelyn</a> <br> LinkedIn: <a href="https://in.linkedin.com/in/jocelyn-fernandes-journalist">LinkedIn</a>
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