LIC Stake Sale: Govt to Offload 6.50% via OFS in August 2026
By Business Desk
India’s government plans to sell up to 6.50% of LIC equity via an Offer for Sale (OFS) on August 4-5, 2026, to meet SEBI’s public shareholding norms. Floor price set at ₹382.
The Government of India has announced an Offer for Sale (OFS) to divest up to 6.50% of LIC of India’s total issued and paid-up equity share capital. This significant move, scheduled for August 4-5, 2026, aims to ensure compliance with SEBI’s minimum public shareholding norms.
Understanding the OFS Structure
The Offer for Sale will unfold across two trading days, catering to different investor categories. Non-retail investors will participate on August 4, 2026, followed by retail investors and eligible employees on August 5, 2026.
The base offer size includes 31,62,49,885 equity shares, representing 2.50% of the total paid-up capital. An oversubscription option allows for an additional sale of 50,59,99,816 equity shares, accounting for 4.00% of the capital.
Separately, 50,00,000 shares, or 0.04% of the capital, are specifically reserved for eligible employees.
Pricing and Discounts for Investors
The floor price for this offer has been fixed at ₹382 per equity share. To encourage broader participation, a discount mechanism is in place for specific investor groups.
Retail investors and eligible employees will receive a discount of ₹10 per equity share on the cut-off price. Employees are permitted to apply for shares valued up to ₹500,000, with an initial allotment capped at ₹200,000.
Allocation Rules for Investors
Share allocation for the OFS will follow a price priority system, with specific reservations for different investor segments. This structured approach aims to ensure equitable distribution among qualified bidders.
A minimum of 25% of the offer shares are reserved for SEBI-registered Mutual Funds and IRDAI-registered Insurance Companies. In the non-retail category, no single bidder, excluding these institutions, will be allocated more than 25% of the total offer shares.
Retail investors, defined as individuals bidding for not more than ₹200,000, are reserved a minimum of 10% of the offer shares.
This share sale underscores the Government of India’s ongoing commitment to adhere to regulatory mandates. The phased approach and specific allocation rules are designed to manage market impact and ensure broad investor access to LIC’s equity.