<b>India's largest-ever OFS: Government raises ₹31,552 crore (US$3.3 billion) by divesting 6.5% stake in LIC, achieving 10% public shareholding milestone ahead of May 2027 regulatory deadline.</b>

Regulatory 8 Aug 2026· ₹31,552 cr ($3.3 bn) · Completed· ◔ Reported

The Indian government successfully raised Rs 31,552 crore through the LIC Offer for Sale, which closed with overwhelming investor response. The issue was oversubscribed on both days, leading to the exercise of the full green shoe option. With this, LIC's public shareholding has increased to 10 percent, achieving the minimum public shareholding requirement ahead of schedule. This marks India's largest public offering ever in terms of amount raised, with 82,23,33,558 shares allocated. The government sold up to a 6.5% stake in Life Insurance Corporation (LIC) at a floor price of ₹382/share through a two-day offer for sale (OFS) beginning on Tuesday (August 4, 2026), with the issue opening for…

Why it mattersGovernment OFS structure for large PSUs achieves MPS compliance via full green-shoe exercise (6.5% = 2.5% base + 4% oversubscription option) rather than staged tranches; floor pricing strategy (₹382 at 10% discount) absorbs institutional appetite despite initial retail hesitation; allotment mechanics (₹373.10 cut-off price) balance demand with market stability-a model for future multi-tranche PSU disinvestments.
CounselDentons Link Legal, Trilegal, Sidley Austin, FBT Gibbons
SectorFinancial Services
Value₹31,552 cr ($3.3 bn)
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