Centre to Liquidate 6.5% Stake in LIC for Rs 31,000 Crore at Rs 382 Per Share

According to Pratidin Time, the Indian government is moving forward with its disinvestment programme by planning to liquidate a 6.5 per cent stake in the Life Insurance Corporation (LIC). The proposed transaction is expected to generate approximately Rs 31,000 crore for the national exchequer. The sale will be executed through an Offer for Sale (OFS) mechanism, with a floor price set at Rs 382 per share.

The divestment process is structured to occur in stages, with the issue opening for non-retail investors on Tuesday, followed by retail investors on Wednesday. The total offering involves over 82.22 crore shares. According to the Department of Investment and Public Asset Management (DIPAM), the government intends to initially disinvest 2.5 per cent of its equity, with an additional 4 per cent available as a green shoe option to meet investor demand.

This move is part of the government's broader strategy to meet its public sector disinvestment targets and comply with regulatory requirements regarding minimum public shareholding. The LIC, as a major state-owned financial institution, remains a central focus for the government's revenue-generation efforts through equity dilution. Market analysts are expected to monitor the subscription levels closely as the issue opens, given the significant volume of shares being brought to the market.