LIC OFS: Non-retail bidding opens tomorrow at ₹382/share, retail bidding opens on Aug 5

The Centre today announced an Offer for Sale (OFS) to divest up to a 6.5% stake in Life Insurance Corporation of India (LIC), fixing the floor price at ₹382 per share to accelerate compliance with public shareholding norms ahead of schedule.

The bidding process will open for non-retail investors on August 4, while retail investors will be able to place their bids on  August 5.

Confirming the timeline, Secretary, DIPAM in a post on X (formally twitter) wrote, "Offer for Sale in LIC opens tomorrow 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."

Under the proposed structure, the government is putting up a base issue of 2.5% equity, retaining the option to offload an additional 4% through a greenshoe mechanism if institutional demand remains strong. Bids submitted below the floor price of ₹382 will not be accepted, with the final allotment price determined by demand over the two-day window.

The government currently holds a 96.5% majority stake in the insurance behemoth after selling a 3.5% stake during its May 2022 market debut. The Securities and Exchange Board of India (SEBI) has mandated LIC to raise its public shareholding to at least 10% by May 2027, with an ultimate target of reaching a 25% free float.

The fresh OFS tranche moves the Centre closer to meeting those statutory benchmarks while expanding secondary market liquidity.