LIC OFS raises record ₹31,552 crore; public float climbs to 10%

The government on Wednesday, August 5, said the offer for sale (OFS) in Life Insurance Corporation (LIC) received an overwhelming response from both retail and non-retail investors, enabling it to raise a record ₹31,552 crore through India's largest public offering.

In a post on X, Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said the issue was oversubscribed on both days, prompting the government to exercise its entire greenshoe option. As a result, LIC's public shareholding has increased to 10%, achieving the regulatory milestone ahead of schedule.

A total of 82,23,33,558 equity shares were allotted under the OFS, raising ₹31,552 crore, making it the country's largest public offering to date.

"We thank all the investors for their enthusiastic participation and reposing their faith in us," Chawla said in the post.

The OFS comprised a 2.5% base offer and a 4% greenshoe option, taking the total offer size to 82.23 crore equity shares, or 6.5% of LIC's equity capital.

The stake sale was aimed at helping LIC meet the minimum public shareholding (MPS) requirement mandated by the market regulator, SEBI, ahead of the May 16, 2027 deadline. Prior to the OFS, the government owned 96.5% of the insurer.

The two-day OFS was conducted on August 4 and August 5, with the bidding window opening for non-retail investors on August 4 and retail investors on August 5.

LIC had previously sold a 3.5% stake through its IPO in May 2022 at a price band of ₹902–₹949 per share, raising around ₹21,000 crore. In April 2026, the insurer's board approved a 1:1 bonus issue.

With the LIC OFS, the government has continued its divestment drive. Before this transaction, it had raised ₹21,082 crore in the current fiscal through stake sales in seven public sector undertakings and remittances from the Specified Undertaking of the Unit Trust of India (SUUTI).