The government has raised Rs 31,552 crore through 6.5% LIC stake sale through an offer for sale (OFS) that closed on Wednesday, making it the largest public offer in the history of the Indian stock market.

Key Highlights

• Government raised Rs 31,552 crore from LIC stake sale, the largest public offer in Indian markets.
• LIC public shareholding reached 10% ahead of schedule, as shares were allotted at Rs 383.69 apiece.

Against 82.2 crore shares on offer, including the greenshoe option, total demand stood at a robust 111.3 crore shares, reflecting strong investor appetite for the country's largest insurer. Given the overwhelming response, shares were allotted at Rs 383.69 apiece, slightly above the base price of Rs 382 per share.

Public Shareholding in LIC Reaches 10% Ahead of Schedule

Dipam Secretary Arunish Chawla said on X that following 6.5% LIC stake sale, public shareholding in the company has now reached the 10% level, adding that the milestone was achieved ahead of schedule. The development is significant as it brings LIC closer to meeting SEBI's minimum public shareholding norm applicable to listed companies.

Strong Demand Reflects Investor Confidence in LIC

The scale of demand - with bids received for well over the shares on offer - underscores continued investor confidence in LIC's business fundamentals and its position as India's dominant life insurance player. The successful execution of the OFS also marks a key milestone in the government's broader disinvestment strategy for the current fiscal year, as it looks to monetise stakes in public sector enterprises while gradually aligning them with regulatory shareholding requirements.

Also Read: LIC Emerges as India's Top Financial Sector Profit Leader in Q4 FY26

With the latest divestment, the government continues its phased approach to reducing its holding in LIC since the insurer's landmark stock market listing, balancing the twin objectives of raising resources for the exchequer and improving public float in one of India's most closely tracked listed companies.

The successful LIC OFS is expected to bolster the government's disinvestment receipts for the fiscal year, coming at a time when the broader market has shown renewed appetite for large-ticket public sector offerings. Market participants will now watch for further updates on the government's remaining stake reduction plans for LIC, as it works toward full compliance with SEBI's public offer norms in the years ahead.