Mega LIC OFS Delivers 31,552 Crore Boost To Government Exchequer

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The Central Government has raised ₹31,552 crore through the Offer for Sale (OFS) of the Life Insurance Corporation of India (LIC). The issue concluded successfully after receiving an overwhelming response from both retail and institutional investors.

The Secretary of the Department of Investment and Public Asset Management (DIPAM) stated on the social media platform ‘X’ that the OFS was oversubscribed on both days, prompting the government to fully exercise the green-shoe option.

The government announced that with the completion of the OFS, the public shareholding in LIC has risen to 10 percent. Consequently, the Minimum Public Shareholding (MPS) target mandated for listed companies has been achieved ahead of schedule.

According to DIPAM, 82,23,33,558 shares were allocated under this issue, raising ₹31,552 crore. In terms of value, this has become India’s largest-ever public offering.

The DIPAM Secretary noted that both retail and institutional investors participated enthusiastically in the OFS and expressed confidence in the government. He extended his gratitude to all the investors.

On Wednesday, LIC shares closed at ₹393 on the National Stock Exchange (NSE), marking a gain of 0.43 percent.

The government had previously announced the sale of a 2.5 percent stake in LIC, which included an additional 4 percent green-shoe option. The floor price for the OFS was set at ₹382 per share.

This disinvestment process was initiated to ensure LIC’s compliance with the Minimum Public Shareholding (MPS) norms prescribed for listed companies.

The OFS opened for non-retail investors on the first day and for retail investors on the second day. Following strong demand across all investor categories, the government maximized the stake sale by fully exercising the green-shoe option. This OFS is considered a significant milestone under the government’s disinvestment program, enabling LIC to achieve the 10 percent public shareholding target ahead of the regulatory deadline.

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