The government mobilised Rs 31,552 crore by divesting a 6.5% stake in life insurance major LIC through an offer for sale (OFS) that closed on Wednesday, according to Business-Today. The fund raise makes the LIC OFS the biggest public offer in the Indian stock market, the report said.
Record fund raise
According to Business-Today, total demand for the OFS stood at 111.3 crore shares, against 82.2 crore shares on offer, including the greenshoe option. Shares were allotted at Rs 383.69 per share, slightly above the base price of Rs 382 per share. The Rs 31,552-crore proceeds make this the largest public offer in Indian stock market history, the report noted.
Pricing and investor demand
The report highlighted the strong response to the offer, which resulted in an allotment price marginally above the base. The following table summarises the offer's key metrics:
| Metric | Value |
|---|---|
| Stake divested | 6.5% |
| Total proceeds | Rs 31,552 crore |
| Shares on offer (incl. greenshoe) | 82.2 crore |
| Total demand | 111.3 crore |
| Allotment price | Rs 383.69 per share |
| Base price | Rs 382 per share |
Business-Today also reported that the final allotment price of Rs 383.69 was fixed against the base price of Rs 382, reflecting bidder demand above the floor.
Public shareholding milestone
Dipam secretary Arunish Chawla said on X that after offloading 6.5% in LIC, public shareholding in the life insurance major is now at the 10% level. According to Business-Today, Chawla wrote, "it has achieved this critical milestone ahead of schedule." The top government official was indicating that the company now meets Sebi's minimum public shareholding norm for listed companies, the report said.
Data points for CFOs, treasury desks and investors
For finance executives and investors tracking Indian capital markets, the LIC OFS offers concrete data points: Rs 31,552 crore in gross proceeds, a 6.5% stake divested, and an allotment price of Rs 383.69 per share, as per Business-Today. The demand-side metrics — 111.3 crore shares bid against 82.2 crore shares offered — provide a quantified measure of investor appetite for the counter. Additionally, the report noted that LIC's public shareholding now stands at 10%, which meets the Sebi minimum public shareholding norm for listed companies.
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