Life Insurance Corporation of India.
| Photo Credit: Reuters
The government will sell up to a 6.5% stake in Life Insurance Corporation (LIC) at a floor price of ₹382/share through a two-day offer for sale (OFS) beginning on Tuesday (August 4, 2026).
The issue opens for non-retail investors on Tuesday (August 4) and for retail investors on Wednesday (August 5).
If fully subscribed, the sale of over 82.22 crore shares or a 6.5% stake at the given floor price will fetch about ₹31,000 crore to the disinvestment kitty.
“Government offers to disinvest 2.5% equity with an additional 4% as a green shoe option,” Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X.
The floor price is at a 10% discount over Monday’s closing price of LIC shares of ₹424.35 on the BSE.
The stake sale will help LIC achieve the minimum public shareholding requirement mandated by market regulator Sebi ahead of schedule.
Sebi had given LIC time till May 16, 2027, to achieve a minimum 10% public shareholding.
At present, the government holds a 96.5% stake in LIC.
It had earlier sold 3.5% through an initial public offering (IPO) in May 2022 at a price band of ₹902-949 per share, raising about ₹21,000 crore.
LIC currently has a market capitalisation of over ₹5.36 lakh crore. LIC shares settled at ₹424.35 on Monday (august 3), down 0.12% over the previous close on BSE.
So far in the current fiscal, the government has mopped up ₹21,082 crore through stake sale in seven public sector undertakings and remittances from SUUTI (Specified Undertaking of the Unit Trust of India).
Published – August 04, 2026 01:35 am IST
