New Delhi, 04 August (H.S.): The Offer for Sale (OFS) of state-owned insurance giant Life Insurance Corporation of India (LIC) received 66.10 per cent subscription in the category reserved for institutional investors by Tuesday afternoon. The Central Government has set a minimum floor price of Rs 382 per share for the stake sale through the OFS route.

According to data released by stock exchanges, institutional investors placed bids for more than 18.81 crore shares at an indicative price of Rs 382.07 per share, accounting for 66.10 per cent of the portion reserved for them. The Central Government is offering over 28.46 crore LIC shares to institutional investors at a minimum price of Rs 382 per share.

Retail investors will be able to place their bids on Wednesday. The government is selling its 6.5 per cent stake in LIC, comprising more than 82.22 crore shares, at a floor price of Rs 382 per share. The stake sale is expected to generate around Rs 31,000 crore for the government. The move will also help LIC achieve the minimum public shareholding requirement ahead of the deadline.

The Department of Investment and Public Asset Management (DIPAM), under the Ministry of Finance, said in a post on social media platform X that the government is offering to sell a 2.5 per cent stake in LIC. An additional 4 per cent stake may also be sold under the 'green shoe option'. The floor price for the offer has been fixed at Rs 382 per share. This will help the company meet the minimum public shareholding (MPS) requirement ahead of schedule.

It may be noted that market regulator Securities and Exchange Board of India (SEBI) has granted LIC time until May 16, 2027, to achieve the minimum 10 per cent public shareholding requirement. At present, the government holds a 96.5 per cent stake in LIC.

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Hindusthan Samachar / Jun Sarkar