LIC OFS Raises Record ₹31,552 Crore as Government Achieves 10% Public Shareholding Ahead of SEBI Deadline

The Government of India has successfully raised a record ₹31,552 crore through the 6.5% offer for sale (OFS) of Life Insurance Corporation of India (LIC), marking the country's largest public offering to date. The issue witnessed strong participation from both retail and non-retail investors, enabling the government to fully exercise its greenshoe option. The transaction also helped LIC achieve the mandated 10% public shareholding well ahead of the Securities and Exchange Board of India (SEBI)'s May 2027 deadline.

LIC OFS Sees Strong Investor Demand

According to the Department of Investment and Public Asset Management (DIPAM), the two-day OFS was oversubscribed across both investor categories. DIPAM Secretary Arunish Chawla stated that the enthusiastic response allowed the government to exercise the entire 4% greenshoe option in addition to the 2.5% base offer.

A total of 82.23 crore equity shares were allotted under the OFS, resulting in proceeds of ₹31,552 crore. Following the transaction, LIC's public shareholding increased from 3.5% to 10%, enabling the insurer to meet SEBI's minimum public shareholding requirement nearly a year ahead of the May 16, 2027 deadline.

Offer Size Comparable to India's Biggest Upcoming IPOs

The government launched the OFS nearly four years after LIC's landmark IPO in May 2022, when it sold a 3.5% stake and raised around ₹21,000 crore at a price band of ₹902-₹949 per share.

The latest 6.5% stake sale, comprising a 2.5% base offer and a 4% greenshoe option, is comparable in size to some of India's anticipated mega public issues, including those expected from NSE and Reliance Jio Platforms.

The bidding window opened for non-retail investors on August 4, while retail investors participated on August 5. Earlier this year, in April 2026, LIC's board had also approved a 1:1 bonus issue.

Government's Divestment Momentum Continues

The LIC OFS further strengthens the government's divestment programme for the current financial year. Before this transaction, it had already mobilised ₹21,082 crore through stake sales in seven public sector undertakings and remittances from the Specified Undertaking of the Unit Trust of India (SUUTI).

Conclusion

The successful completion of the LIC OFS not only reflects robust investor confidence in India's largest insurer but also marks a significant milestone in the government's broader disinvestment strategy while ensuring compliance with regulatory public shareholding norms.

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