LIC share price declined, trading down by 6.07 per cent at Rs 398.60 as of 9:30 am after the announcement of an Offer for Sale (OFS) by the government. The government is set to sell up to a 6.5 per cent stake in the Life Insurance Corporation of India (LIC) through this issue, which is priced at Rs 382 per share.
When will the OFS issue open?
The OFS will open for non-retail investors on Tuesday, followed by retail investors on Wednesday. If fully subscribed at the floor price, the sale of over 822.2 million shares—representing a 6.5 per cent stake—is expected to generate approximately Rs 31,000 crore for the government.
The government will raise funds
Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM), announced on X that the government proposes to divest 2.5 per cent of its equity, with an additional 4 percent allocated as a 'green shoe' option. This provision allows for the sale of additional shares should demand exceed the initial offering.
10 per cent discount
The floor price represents a 10 per cent discount compared to Monday's BSE closing price of Rs 424.35. This divestment will assist LIC in meeting its minimum public shareholding requirements ahead of the SEBI-mandated deadline of May 16, 2027. Currently, the government retains a 96.5 per cent stake in the company.
Stock Market Today
Stock market benchmark indices Sensex and Nifty traded mixed in early trade on Tuesday after the introduction of a new auction system for shares traded with Futures and Options (F&O) contracts.
The closing auction session (CAS) for the equity cash segment began on Monday, with a new auction-based system for determining the closing price of eligible stocks, aimed at making the price discovery process more transparent and robust.
The 30-share BSE Sensex rose 97 points to 78,736.20. The 50-share NSE Nifty fell 173.95 points to 24,600.35.