LIC OFS subscribed 3.32x on Day 1; Govt to exercise greenshoe option, retail bidding opens Wednesday

The offer for sale (OFS) by the government in Life Insurance Corporation (LIC) received a bumper response from non-retail investors on Tuesday, August 4, the first day of the issue. BSE data showed that the OFS was subscribed 331.86%, or around 3.32 times.

Non-retail investors in an OFS include institutional and high-net-worth investors such as mutual funds, insurance companies, and foreign portfolio investors (FPIs).

Following the strong response, the government has decided to exercise the greenshoe option of 4%. The Centre had planned to divest a 2.5% stake in the OFS, with an option to exercise the greenshoe option, taking the total divestment to 6.5%.

In a post on X on Tuesday, the Department of Investment and Public Asset Management (DIPAM) Secretary said, "Offer for Sale in the Life Insurance Corporation of India (LIC) received an overwhelming response from the institutional investors and was oversubscribed 3.32 times its base size. 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!" the post added.

Shares of the state-owned life insurer settled 7.86% lower at ₹391 apiece on the BSE on Tuesday. On the NSE, the stock ended at ₹391.30, down 8.68%.

LIC OFS: Details for retail investors and eligible employees

In a post-market notice to the stock exchanges on Tuesday, the government said it had decided to exercise the oversubscription (greenshoe) option for 50,59,99,816 equity shares, representing 4% of LIC's total paid-up equity share capital, in addition to the base offer size of 31,62,49,885 equity shares (2.5% stake).

Accordingly, the total OFS size has been increased to 82,22,49,701 equity shares, representing 6.5% of LIC’s total paid-up equity share capital.

Of the total offer size, 8,22,24,971 equity shares, or 10% of the offer, will be reserved for the retail category on T+1 day (August 5, 2026), subject to the receipt of valid bids.

Additionally, up to 50 lakh equity shares will be offered to eligible employees of LIC in accordance with the OFS guidelines.

Retail investors and eligible employees can bid at an effective price of ₹373.10 per share, after factoring in the ₹10 per share discount. The cut-off price for non-retail investors remains unchanged at ₹383.10 per share, the filing added.

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).