The President of India, represented by the Ministry of Finance, is set to divest up to 6.50% of its stake in the Life Insurance Corporation of India (LIC) through an Offer for Sale (OFS). The sale, with a base offer size of 2.50% and an oversubscription option of 4%, will occur on August 4-5, 2026. The floor price is set at ₹382 per share, with a retail discount of ₹10.
Government to Divest Stake in LIC
The President of India, acting through the Department of Financial Services, Ministry of Finance, Government of India, has announced its intention to sell a portion of its shareholding in the Life Insurance Corporation of India (LIC). This Offer for Sale (OFS) aims to reduce the promoter’s stake and increase the public shareholding in the corporation.
Offer Details and Size
The proposed Offer for Sale will involve up to 31,62,49,885 Equity Shares, representing 2.50% of LIC’s total paid-up equity share capital, as the base offer size. Additionally, an oversubscription option to sell up to 50,59,99,816 Equity Shares (representing 4% of the total equity capital) is also available. Collectively, these shares represent 6.50% of the total issued and paid-up equity share capital of the Corporation.
Sale Schedule and Pricing
The Offer will take place over two trading days. Non-Retail Investors can place bids on August 4, 2026 (T day), while Retail Investors and non-Retail Investors who opt to carry forward un-allotted bids will participate on August 5, 2026 (T+1 day). Both trading days will run from 9:15 a.m. to 3:30 p.m. IST. The floor price for the Offer has been fixed at ₹382 per Equity Share. Retail Investors will be eligible for a discount of ₹10 on the cut-off price.
Employee Offer
In addition to the main OFS, up to 50,00,000 Equity Shares (equivalent to 0.04% of the total paid-up equity capital) may be offered to eligible employees of LIC. Employees can bid for shares up to ₹5,00,000 in total value, with individual allotments capped at ₹2,00,000, subject to competent authority approval.
Seller and Broker Information
The Seller in this Offer is the President of India. The Seller’s Brokers include IIFL Capital Services Limited, BNP Paribas Securities India Private Limited, Goldman Sachs (India) Securities Private Limited, and Motilal Oswal Investment Advisors Limited.
Key Conditions
The Seller reserves the right to withdraw the offer before its opening. The offer may be cancelled if sufficient demand from non-Retail Investors is not met or in case of settlement defaults. Bidders in the non-Retail Category must deposit 100% of the bid value upfront. Retail Investors are defined as individuals placing bids up to ₹2,00,000.
Source: BSE
