The record
Written from the 1 report below. Nothing here is unsourced.
- LIC shares fell nearly 9% on Tuesday after the government announced it would sell a stake in the insurer through an Offer for Sale priced about 11% below Monday's closing price.
- The government plans to sell 6.5% of LIC, starting with 2% and keeping an option for another 4.5%, at a floor price of Rs 382 per share, aiming to raise about Rs 31,400 crore.
- The government currently holds 96.5% of LIC, which must raise its public shareholding to 10% by May 2027, and the discounted OFS triggered heavy selling pressure on the stock.
What to watch next
- Whether the government exercises the full 6.5% stake sale option, which would meet LIC's minimum public shareholding requirement ahead of the May 2027 deadline.
- Retail investor demand when the OFS opens on Wednesday, after non-retail investors began bidding on Tuesday.
- Whether LIC shares stabilise or face further pressure as the OFS pricing continues to weigh on market sentiment.
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1 report
Indian-language1
All filed from India
Named India · Life Insurance Corporation of India · Government of India
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