Government raises Rs 31,552 crore as LIC Offer for Sale closes with overwhelming investor response
New Delhi, August 5
The Government has raised Rs 31,552 crore through the Offer for Sale in Life Insurance Corporation of India, with the issue receiving an overwhelming response from both retail and institutional investors, according to a social media post by the Department of Investment and Public Asset Management.
The DIPAM Secretary said the LIC OFS was oversubscribed on both days, following which the Government exercised its entire green shoe option.
With the successful completion of the OFS, the Government has increased LIC's public shareholding to 10 per cent, achieving the minimum public shareholding (MPS) requirement ahead of schedule.
According to the post, 82,23,33,558 shares were allocated under the offer, making it India's largest public offering ever in terms of amount raised.
"Offer for Sale in the Life Insurance Corporation of India (LIC) closed with an overwhelming response from both retail and institutional investors. The issue was oversubscribed on both days, and the Government exercised its entire green shoe option. With this, the public ownership of LIC has increased to 10%, and it has achieved this critical milestone ahead of schedule. A total of 82,23,33,558 shares have been allocated for an amount of Rs. 31,552 crores, making it India's largest public offering ever. We thank all the investors for their enthusiastic participation and reposing their faith in us," the DIPAM Secretary said on X.
LIC shares closed at Rs 393 a share on NSE, up 0.43 per cent today.
Earlier, the Government had announced the OFS of 2.5 per cent equity in LIC, with an additional 4 per cent green shoe option, at a floor price of Rs 382 per share.
The disinvestment was aimed at helping LIC meet the minimum public shareholding (MPS) norms prescribed for listed companies.
The offer opened first for non-retail investors, followed by retail investors the next day. With the issue receiving strong demand across investor categories, the Government exercised the full green shoe option, taking the total sale to its maximum size.
The successful completion of the OFS marks a key milestone in the Government's disinvestment programme, while bringing LIC's public shareholding to the required 10 per cent level ahead of the regulatory deadline.
— ANI
Reader Comments
My parents have had LIC policies for 30+ years. It's reassuring to see the company meeting these regulatory milestones on time. The oversubscription shows people still trust LIC despite all the private insurance competition. Good move by the government.
Impressive numbers indeed. The green shoe option being fully taken up is a great sign for the Indian capital markets. However, I do hope the government uses these disinvestment proceeds wisely, be it for infrastructure or reducing fiscal deficit. Transparency in utilization is key.
31,552 crore! That's massive. As a retail investor who subscribed to this OFS, I'm happy with the response. But at Rs 393, the stock is still below its IPO price of Rs 949. I hope the management focuses on improving policyholder value and returns for shareholders going forward.
The LIC IPO was a letdown for many small investors, but this OFS seems better managed. Meeting the 10% MPS ahead of schedule is commendable. However, I remain cautious about the government's habit of selling assets to meet fiscal targets. Are we getting true value for our national insurance behemoth? 🤔
This is a positive development for India's capital markets. The successful OFS with full green shoe exercise signals strong investor appetite. LIC's role in the Indian financial ecosystem is unique and this broader public holding could bring more transparency and governance standards. Well done, DIPAM.
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