LIC OFS opens: Govt to sell up to 6.5% stake; check floor price and retail bidding details

The long-awaited offer for sale (OFS) in Life Insurance Corporation (LIC) has finally opened, with the government launching a stake sale of up to 6.5% in the country's largest insurer.

The government on Tuesday announced that it will sell up to a 6.5% stake in LIC at a floor price of ₹382 per share through a two-day OFS. The issue opens for non-retail investors on Tuesday (August 4), while retail investors can bid on Wednesday (August 5).

If the issue is fully subscribed, the sale of over 82.22 crore shares, representing a 6.5% stake, is expected to fetch around ₹31,000 crore for the government's disinvestment kitty.

"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 X.

Key details

The floor price is at a 10% discount over Monday's closing price of LIC shares of ₹424.35 on the BSE. On the NSE, the stock settled at ₹428.50.

The stake sale will help LIC meet the minimum public shareholding requirement mandated by the market regulator, SEBI, ahead of schedule.

SEBI had given LIC time till May 16, 2027, to achieve a minimum 10% public shareholding.

At present, the government holds a 96.5% stake in LIC.

LIC IPO details

In May 2022, LIC sold a 3.5% stake through an initial public offering (IPO) at a price band of ₹902-₹949 per share, raising about ₹21,000 crore.

Divestment receipts so far

So far in the current fiscal year, the government has raised ₹21,082 crore through stake sales in seven public sector undertakings (PSUs) and remittances from the Specified Undertaking of the Unit Trust of India (SUUTI).

Why does the government launch OFS from time to time?

An Offer for Sale (OFS) is a mechanism through which the government sells its stake in listed public sector companies to institutional and retail investors. It helps the Centre raise funds for its disinvestment programme, improve public shareholding to meet SEBI's minimum public shareholding (MPS) norms, and enhance liquidity and broader ownership in listed companies.

Shares likely to fall today

LIC shares may decline as the OFS floor price of ₹382 per share is below the prevailing market price. Stocks typically move closer to the OFS price during such stake sales, with the additional supply of shares also putting short-term pressure on the stock.

LIC Q1 FY27 earnings schedule

Life Insurance Corporation of India (LIC) on July 30 said its Board of Directors will meet on Thursday, August 6, 2026, to consider and approve the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026 (Q1 FY27).

Earnings call

Following the results announcement, LIC will host an earnings call with analysts and investors at 7:00 p.m. IST on August 6 to discuss its financial performance for the June quarter.