The government on August 4 announced an offer-for-sale (OFS) in Life Insurance Corporation of India (LIC), under which it will divest a 2.5 percent stake, with an option to sell an additional 4 percent under the green shoe option. The issue will open for non-retail investors on Tuesday, while retail investors can bid on Wednesday.
The floor price for the OFS has been fixed at Rs 382 per share, the Department of Investment and Public Asset Management (DIPAM) said in a post on X.
"Offer for Sale in LIC opens tomorrow for Non-Retail investors. Retail investors can bid on Wednesday. The government offers to disinvest 2.5 percent equity with an additional 4 percent as a green shoe option. Floor price has been fixed as Rs 382 per share. This will help achieve MPS milestones ahead of schedule," DIPAM Secretary Arunish Chawla said in the post.
If the green shoe option is fully exercised, the government could sell up to 6.5 percent of LIC's equity through the OFS.
The Centre currently holds about 96.5 percent in LIC. The insurer was listed on the stock exchanges in May 2022 through the country's biggest initial public offering.
The latest OFS is expected to increase LIC's public shareholding and help it move closer to meeting the minimum public shareholding (MPS) requirement. Under Securities and Exchange Board of India (SEBI) regulations, listed companies are required to maintain at least 25 percent public shareholding.