LIC OFS Smashes Records: ₹31,552 Crore Mobilized, Public Shareholding Hits Crucial 10% Milestone
India's Largest IPO Achieves Monumental Success Through LIC Offer for Sale
The Government has successfully mobilized a massive ₹31,552 crore through the Offer for Sale (OFS) of Life Insurance Corporation of India (LIC). This monumental issue saw strong participation across both retail and institutional investor segments.According to a statement from the Department of Investment and Public Asset Management (DIPAM), this successful mobilization means that public ownership in LIC has increased to 10%. Achieving this critical milestone ahead of schedule underlines the significance of the offering.
A total of 82,23,33,558 shares were allocated for the amount of ₹31,552 crore, making this transaction India's largest public offering recorded to date, as confirmed by the DIPAM Secretary on X.
Investor Response and Subscription Details
The market response to the OFS was robust, particularly from institutional investors. The non-retail portion of the issue received a subscription rate exceeding three times on Tuesday, which marked the first day of the issue.Retail investor interest also remained exceptionally high. Bids were placed for over 940 million shares in the retail segment. This compared against the 284.6 million shares allocated to the institutional block.
Green Shoe Option Activated Amid High Retail Demand
The substantial demand witnessed in the retail portion of the offering prompted the government to activate the green shoe option. This highlights the intense market interest and faith shown by individual investors in LIC.This successful public offering underscores a major step towards increasing transparency and reducing state control in key financial institutions, while simultaneously boosting the corporation's operational efficiency.
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