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LIC Shares Tumble Amid Government OFS Launch
4 Aug
Summary
- LIC shares dropped significantly after the government's Offer for Sale opened.
- The floor price for the LIC OFS was set at ₹382 per share.
- Government aims to sell up to 6.5% stake, potentially raising ₹31,000 crore.
Life Insurance Corporation of India (LIC) saw its share price fall by over 8% on Tuesday, August 4, 2026, after the government commenced its Offer for Sale (OFS) to non-retail investors. The stock opened at ₹392, a decrease from its previous closing price, and quickly touched an intraday low.
The Department of Investment and Public Asset Management (DIPAM) has fixed the floor price for the OFS at ₹382 per share. This offering allows for the divestment of 2.5% of LIC's equity, with an additional 4% available as a green shoe option, potentially increasing the total stake sale to 6.5%.
If fully subscribed, this strategic sale could yield nearly ₹31,000 crore for the government's disinvestment program. The Centre currently holds approximately 96.5% of LIC, which debuted on the stock market in May 2022 through India's largest-ever IPO.
