Centre to sell 6.5% stake in LIC at floor price of ₹382/share; retail investors can bid on 5 August — All we know
The central government is set to sell up to 6.5% stake in Life Insurance Corporation of India (LIC) at floor price of ₹382 per share through a two-day offer for sale (OFS), DIPAM Secretary said in a post today on social media platform X (formerly known as Twitter).
The process opens for non-retail investors on 4 August and for retail investors on Wednesday, 5 August, the Department of Investment and Public Asset Management's official account added.
The government offer will disinvest 2.5% equity in the insurance behemoth, with an additional 4% as a green shoe option. “This will help achieve MPS milestones ahead of schedule,” the post added.
Govt set to add ₹31,000 crore to disinvestment purse
The offer for over 82.22 crore shares, if fully subscribed, would fetch the Centre nearly ₹31,000 crore for its disinvestment purse, calculated at floor price of ₹382/share, according to a PTI report.
It added that the floor price is at a 10% discount over Monday's close. The closing price of LIC shares on 3 August was ₹424.35 apiece on the BSE, down 0.12% over the previous close.
The move comes as LIC seeks to comply with markets regulator, the Securities and Exchange Board of India's minimum public shareholding requirement mandate ahead of its 16 May 2027 deadline.
SEBI had given the insurance company time to achieve a minimum 10% public shareholding. At present, the government holds a 96.5% stake in LIC.
LIC disinvestment ongoing process
Notably, the Centre had earlier sold 3.5% in LIC through an initial public offering (IPO) in May 2022 at a price band of ₹902-949 per share, raising about ₹21,000 crore, the report added.
LIC currently has a market capitalisation of over ₹5.36 lakh crore. In this fiscal, the central government has so far mopped up ₹21,082 crore through stake sale in seven public sector undertakings (PSUs) and remittances from Specified Undertaking of the Unit Trust of India (SUUTI).
(With inputs from PTI)
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Jocelyn Fernandes is a journalist and editor with nearly 13 years of experience covering the business, corporate, economy and markets beats in news.<br> As chief content producer for around three years at Livemint (Hindustan Times), Jocelyn publishes breaking stories, explainers, features and live blogs on a range of business and economy topics, including the Budget, corporate developments, stock markets, income tax, money and personal finance, cryptocurrency, government policy, impact of US tariffs, international developments and more.<br> Jocelyn's writing philosophy is focused on delivering news in an accurate and accessible format for readers. She thus focuses her news coverage on explainers and FAQs in order to breakdown business, corporate, economic, and policy topics that are of importance to everyday readers.<br> She holds a Bachelors in Mass Media (BMM) and Post Graduate Diploma (PGD) in Journalism and Communication and has previously written for online business and markets news site Moneycontrol (Network18), Business-to-business (B2B) trade publications — the industry magazines Power Today and Solar Today (ASAPP Media), and the national news agency United News of India (UNI).<br> Outside of work, Jocelyn keeps up-to-date with local and international news, enjoys reading fiction books, novels and short stories, and enjoys movies, travelling and art. <br> She can be found on X and LinkedIn, and reached by email: <a href="jocelyn.fernandes@htdigital.in">jocelyn.fernandes@htdigital.in</a> <br> X/ Twitter handle: <a href="https://x.com/scribeJocelyn">@scribeJocelyn</a> <br> LinkedIn: <a href="https://in.linkedin.com/in/jocelyn-fernandes-journalist">LinkedIn</a>
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