The government sold a 10% stake in LIC through an offer for sale (OFS) that ran for two days from August 4 to 5. It raised ₹31,552 crore, making it the largest public offering in India’s history.
Investors from both the institutional and retail segments showed strong demand. The issue was oversubscribed on both days, and the government exercised its entire green‑shoe option to meet the extra orders.
As a result, LIC’s public shareholding rose to 10%, a critical milestone that the insurer had to reach by May 16, 2027, under SEBI’s minimum public shareholding rule. The sale achieved this target roughly nine months before the deadline.
The offer was launched at a floor price of ₹382 per share. A total of 82,23,33,558 shares were sold, and the proceeds were added to the government’s disinvestment collections for the fiscal year.
In FY27, the government had already realised ₹27,568.06 crore through other disinvestments and asset monetisation. With the LIC sale, the year’s total disinvestment income now approaches ₹59,000 crore.
This figure is close to the budgeted ₹80,000 crore under miscellaneous capital receipts, showing how the LIC sale helped boost the fiscal outlook.
DIPAM secretary Arunish Chawla thanked investors for their enthusiasm and confidence. He highlighted that the sale was a success for both the government and the market.
The sale not only helps LIC meet regulatory requirements but also signals the government’s continued willingness to monetise its holdings in key public sector enterprises.