LIC OFS Opens for Retail Investors Today on August 5, 2026: Here's How to Subscribe

Retail investors can now participate in the government's Offer for Sale (OFS) of Life Insurance Corporation of India (LIC), which opened on Wednesday, August 5. The retail portion follows strong demand from institutional investors, with the non-retail segment being oversubscribed 3.32 times, prompting the government to exercise the full greenshoe option.

Through the OFS, the government aims to divest up to a 6.5% stake in LIC, potentially raising nearly ₹31,000 crore. The transaction is one of the biggest disinvestment exercises of the financial year.

LIC OFS: Key Details Investors Should Know

The government initially offered a 2.5% stake in LIC, along with a greenshoe option to sell an additional 4% stake. Following strong institutional demand, the entire 6.5% stake is now on offer.

The floor price for the OFS has been fixed at ₹382 per share, while the clearing price discovered for non-retail investors stood at ₹383.10 per share.

If the entire issue is subscribed, the government's holding in LIC will decline to 90%, while total proceeds from OFS-based disinvestment this financial year could exceed ₹50,000 crore.

How to Subscribe to the LIC OFS

Retail investors can apply for the OFS through their stockbroker's trading platform by following these steps:

• Log in to your broker's website or mobile trading app.
• Navigate to the IPO/OFS or Corporate Actions section.
• Select the active LIC OFS.
• Enter the number of shares you wish to bid for and specify your bid price or choose the cut-off price option, if available.
• Ensure sufficient funds are available in your linked account before submitting the bid. 

Bids placed below the applicable cut-off price will be rejected.

What Else Should Investors Know?

The Department of Investment and Public Asset Management (DIPAM) has indicated that the government does not intend to undertake any further stake sale in LIC for the next 2-3 years after this OFS.

As of the June quarter, around 21 lakh small retail investors held LIC shares in their demat account, collectively owning a 1.5% stake in the insurer. Meanwhile, LIC shares ended 8.7% lower at ₹391.30 in the previous trading session ahead of the retail OFS.

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Conclusion

With the retail subscription window now open, eligible investors can participate in the LIC OFS through their brokerage accounts by following the prescribed application process. The stake sale represents a key milestone in the government's disinvestment programme while increasing public shareholding in India's largest life insurer.

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