Government Launches LIC Offer for Sale to Divest Up to 6.5% Stake at Rs 382 Floor

The Government of India opened an Offer for Sale (OFS) in Life Insurance Corporation of India (LIC) for non-retail investors on August 4, 2026 and for retail investors and employees on August 5. It seeks to divest up to 6.5% - a base 2.5% plus a 4% green-shoe (oversubscription) option - at a floor price of Rs 382 per share (about a 10-11% discount to the previous close). A full sale could raise nearly Rs 31,000 crore and cut the government's holding from 96.5% to 90%, moving LIC toward SEBI's 10% minimum public shareholding (MPS) norm ahead of the 16 May 2027 deadline.