President of India Proposes Offer for Sale of LIC Equity Shares

President of India Proposes Offer for Sale of LIC Equity Shares​

The Promoter through the Government of India has initiated a proposed Offer for Sale (OFS) of equity shares of Life Insurance Corporation of India (LIC), utilizing the stock exchange mechanism. The offer encompasses multiple tranches, including a base offering and an oversubscription option, set to occur over two trading days in August 2026.

The Seller, identified as the President of India acting through the Department of Financial Services, Ministry of Finance, Government of India, intends to sell shares representing 2.50% of LIC's total paid up equity share capital through a Base Offer Size. This constitutes up to 31,62,49,885 Equity Shares.

The sale process is structured across two trading days: T day (August 4, 2026) and T+1 day (August 5, 2026). The offer permits participants in the non-Retail Category to place bids on T day. For both Retail Investors and non-Retail investors who choose to carry forward their un-allotted bids from T day, an allocation period is available on T+1 day.

The overall structure includes a significant Oversubscription Option—a separate designated window for additional shares—which offers up to 50,59,99,816 Equity Shares, representing 4% of the total issued and paid up equity share capital of the Corporation. If this option is exercised, the combined Offer Shares would constitute 6.50% of the total issued and paid up equity share capital.

In addition to the main offerings, a dedicated Employee Offer for 50,00,000 Equity Shares (equivalent to 0.04% of the total issued and paid up equity share capital) may be offered to eligible employees through the stock exchange mechanism.

Key Offer Details​

The following table summarizes the offer structure, timelines, and financial parameters:

Allocation and Pricing Methodology​

The allocation methodology is structured across multiple clearing prices and adheres to the OFS Guidelines. The Floor Price for the Offer has been set at ₹382/- per Equity Share. Prospective bidders in the non-Retail Category are offered a discount of ₹210/- per Equity Share on the cut-off price determined for T day.

A minimum reservation of 25% of the Offer Shares is reserved for Mutual Funds and Insurance Companies, subject to the receipt of valid bids at or above the Floor Price.

The allocation process features distinct methodologies:

• Non-Retail Category: These investors can carry forward un-allotted bids from T day to T+1 day and may revise their bids on T+1 day. The Oversubscription Option, if exercised, is allocated through this category.
• Retail Category: Retail Investors are defined as individuals whose total bid value does not exceed ₹200,000 across the Stock Exchanges. They may bid at any price above the Floor Price or at the Cut-Off Price. Any unsubscribed portion of the Retail Category is eligible for allocation to non-Retail Investors who carried forward their bids on T day.

The Offer will be conducted exclusively through a selection of designated Seller’s Brokers, including IIFL Capital Services Limited, BNP Paribas Securities India Private Limited, Goldman Sachs (India) Securities Private Limited, and Motilal Oswal Investment Advisors Limited.

LICI Stock Price Movement​

On Monday, Life Insurance Corporation Of India shares edged higher to close at ₹428.50, gaining 0.89% and appreciating by ₹3.80. The equity saw active trading volume of 2.04 million shares during the session.