LIC Share Price in Focus as Government Launches 6.5% OFS at ₹382 Per Share

The Government of India on August 3, 2026, announced an Offer for Sale (OFS) of up to 6.5% in Life Insurance Corporation of India (LIC) at a floor price of ₹382 per share.

The floor price is around 10% lower than LIC's closing price of ₹424.35 on the BSE on August 3. LIC also said its trading window will remain closed until August 8, 2026.

LIC OFS Details

The OFS comprises a base issue of 2.5% of LIC's equity, with an additional 4% green shoe option that may be exercised if demand exceeds the base offer.

If the entire 6.5% stake is sold, the government expects to raise approximately ₹31,000 crore through the sale of more than 82.22 crore shares.

LIC OFS Timeline

The OFS will open in 2 phases.

Government Stake and MPS Requirement

The Government of India currently holds a 96.5% stake in LIC. After the OFS, its shareholding is expected to decline to 90%.

The stake sale is aimed at meeting the minimum public shareholding (MPS) requirement. The Securities and Exchange Board of India (SEBI) has granted LIC time until May 2027 to reduce the government's holding to 90%.

LIC OFS History 

The government had earlier divested 3.5% of LIC through its IPO in May 2022 at a price band of ₹902-949 per share, raising around ₹21,000 crore. LIC currently has a market capitalisation of more than ₹5.36 lakh crore.

According to the Department of Investment and Public Asset Management (DIPAM), the LIC OFS forms part of the government's disinvestment programme. So far in the current financial year, the government has raised ₹21,082 crore through stake sales in 7 public sector undertakings (PSUs) and remittances from the Specified Undertaking of the Unit Trust of India (SUUTI).

Read more: Best PSU Stocks for August 2026: HAL, OIL, GAIL, and Others Based on 5-Year Returns.

Conclusion

The government's Offer for Sale will reduce its stake in LIC from 96.5% to 90%, in line with the minimum public shareholding requirement prescribed by SEBI. The OFS, priced at ₹382 per share, will be open for non-retail investors on August 4 and retail investors on August 5. LIC share price is likely to remain in focus as investors track participation in the stake sale and its impact on the stock.

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