LIC OFS Subscribed 3.32x on Day 1; Government to Exercise Greenshoe Option and Retail Bidding Opens

### Government of India Initiates Stake Sale in LIC

The Government of India has initiated a stake sale in Life Insurance Corporation of India (LIC), seeking to offload up to 6.5% of its holding at a price of ₹382 per share. This move is projected to raise approximately ₹31,000 crore for the government’s disinvestment strategy.

The offer-for-sale (OFS) witnessed significant investor interest on its opening day, achieving a subscription rate of 3.32 times, reflecting strong demand, particularly among institutional investors. The retail bidding segment is now open, with expectations that the entire offering will garner substantial participation.

In response to the strong demand, the government is considering exercising the greenshoe option, which allows it to issue additional shares beyond the initial offering.

Following the announcement of the stake sale, LICs stock experienced a decline of around 8%, attributed to the government selling shares at a 10% discount to the current market price. This was met with concern from some investors regarding potential dilution.

A notable shift in LIC’s investment strategy has been observed, as the corporation moves its portfolio decisively away from traditional loans towards alternative asset classes, enhancing its investment diversity.

This stake sale is part of the Indian governments broader objective to reduce fiscal deficits, with aims to collect significant funds through various disinvestment measures in the financial year.