Life Insurance Corporation of India (LIC) has announced the sale of a significant portion of its promoter’s stake. The President of India, through the Ministry of Finance, divested 6.50% of the total paid-up equity share capital. This sale, conducted via an Offer for Sale (OFS) on August 4-5, 2026, involved 82,23,33,558 shares, reducing the promoter’s holding to 90.00%.
Promoter Stake Reduction in LIC
In a significant disclosure, the President of India, acting through the Department of Financial Services, Ministry of Finance, has completed a substantial sale of equity shares in the Life Insurance Corporation of India (LIC). This Offer for Sale (OFS) reduced the promoter’s holding in the Corporation, impacting the overall shareholding structure.
Sale Details and Impact
The Offer for Sale (OFS), conducted on August 4, 2026 (T day) and August 5, 2026 (T+1 day), saw the promoter sell a total of 82,23,33,558 equity shares. This represented 6.50% of the total paid-up equity share capital of LIC. Prior to this transaction, the promoter held 96.50% of the total equity share capital.
Following the sale, the promoter’s holding has decreased to 11,38,49,12,004 shares, which constitutes 90.00% of the total equity share capital. The sale was executed through a separate designated window on the BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE), adhering to the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011.
Offer Size and Employee Allocation
The initial proposed sale was for up to 31,62,49,885 equity shares (2.50% of capital), with an option to sell an additional 50,59,99,816 shares (4.00% of capital) through an oversubscription option. Furthermore, up to 50,00,000 equity shares were offered to eligible employees of the Corporation as part of the ‘Employee Offer’, in accordance with the OFS Guidelines.
The transaction details are in compliance with Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011, with the information being notified within the stipulated timeframe following the closure of the OFS.
Source: BSE
