Offer for Sale in the Life Insurance Corporation of India (LIC) received an overwhelming response from the institutional investors and was over-subscribed 3.32 times of its base size, Secretary, Department of Investment and Public Asset Management (DIPAM) said in a post on X.
This enthusiastic participation reflects robust investor confidence and the depth of India’s capital markets. In view of the exceptional demand, the Government has decided to exercise the green shoe option. Retail investors get to bid tomorrow. Make the most of this opportunity!
Offer for Sale in LIC opened on Wednesday for Non-Retail investors. Retail investors can bid on Wednesday. Government offers to disinvest 2.5% equity with an additional 4% as a green shoe option. Floor price has been fixed as Rs 382 per share. This will help achieve MPS milestones ahead of schedule.
Life Insurance Corporation of India’s (LIC) shares have declined over 8 percent in early trade today after the Government’s Offer-for-Sale (OFS) opened for subscription to non-retail investors.
The Government’s Offer-for-Sale (OFS) of 2.5 percent stake in LIC, with an option to offload an additional 4 percent via the green shoe option (the green shoe option allows the government to sell additional shares beyond the original OFS size if there is strong demand from investors) taking the potential stake sale to 6.5 percent.
Market experts believe the significant decline in LIC’s stock today is a reaction to the Government’s Offer-for-Sale (OFS) as the Rs 382 floor price reflects a notable discount. They also believe the discount has led to near-term price pressure as investors adjust their expectations around the supply of shares coming into the market.
LIC OFS Over-Subscribed 3.32 Times Of Its Base Size
