The OFS , which could be between 2.5% and 3% of government’s equity in LIC, could mobilise between Rs14,000 crore and Rs 17,000 crore
New Delhi: The government is firming up further stake sale of between 2.5% and 3% of its equity in Life Insurance Corporation (LIC) and has appointed IDBI Capital, and Motilal Oswal for the purpose of its offer-for-sale (OFS).
The final size and pricing of the OFS are expected to be determined by disinvestment department after the global roadshows.
The sale could mobilise between Rs14,000 crore and Rs 17,000 crore for the government.
A top team of officials from Department of Financial Services(DFS),Department of Investment and Public Asset Management (DIPAM) LIC and merchant bankers will be visiting a few cities like Singapore, Hong Kong and London next week for roadshows.
The government currently holds 96.5 per cent stake in LIC. It had sold 3.5 per cent through an initial public offering (IPO) in May 2022 at a price band of Rs 902-949 a share. The share sale fetched the government around Rs21,000 crore.
Under SEBI norms, LIC has until May 16, 2027, to raise its public shareholding from the present 3.5% to at least 10%.
For FY26, the government has set a Rs 47,000 crore disinvestment target.