LIC slips as government launches OFS at Rs 382 per share

Shares of Life Insurance Corporation of India (LIC) fell 7.35% to Rs 397 on Tuesday after the Government of India launched an offer for sale (OFS) to pare its stake in the state-owned insurer.

The President of India, acting through the Department of Financial Services, Ministry of Finance, is offering up to 31,62,49,885 equity shares in the base issue through the stock exchange mechanism. The government has also retained an oversubscription option to sell up to an additional 50,59,99,816 shares, taking the total offer size to 82,22,49,701 shares.

The floor price for the OFS has been fixed at Rs 382 per share, representing a discount of 10.85% to LIC's previous closing price of Rs 428.50 on the NSE.

The OFS opened for non-retail investors on 4 August 2026 and will open for retail investors on 5 August 2026. Non-retail investors also have the option to carry forward their bids to the retail bidding day.

As of 11:00 a.m. on Tuesday, the non-retail portion had received bids for 9,70,91,389 shares, translating into a subscription of 34.11% of the base non-retail offer. The indicative price stood at Rs 382.01 per share.

Out of the base offer, 3,16,24,989 shares have been reserved for retail investors and 28,46,24,896 shares for non-retail investors. Under the greenshoe option, the retail portion can increase to 8,22,24,971 shares, while the non-retail allocation can rise to 74,00,24,730 shares.

The government has also reserved up to 50 lakh shares for eligible employees. Retail and employee investors bidding at the cut-off price will receive a discount of Rs 10 per share.

Life Insurance Corporation of India is engaged in the business of life insurance in and outside India. It offers a range of individual and group insurance solutions including participating, non-participating and unit linked business. The portfolio comprises of various insurance and investment products such as protection, pension, savings, investment, annuity, health, variable and CRAC.

The company reported 23.3% rise in consolidated net profit to Rs 23,467.18 crore in Q4 FY26 from Rs 19,038.67 crore in Q4 FY25. the company reported 23.3% rise in consolidated net profit to Rs 23,467.18 crore in Q4 FY26 from Rs 19,038.67 crore in Q4 FY25.

The company will declare its Q1 results on 6 August 2026.

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