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Centre Sells 82.23 Crore LIC Shares, Raises Rs 31,552 Crore

The sale meets SEBI’s minimum public-shareholding rule by raising LIC’s public float to 10% before the regulatory deadline.

Overview

  • The government completed a two-day offer for sale on Thursday, allocating 82,23,33,558 LIC shares and raising Rs 31,552 crore by exercising a full 4% green shoe option.
  • Officials started with a 2.5% base offer and expanded it to 6.5% after strong demand, a move designed to limit selling pressure and signal investor interest.
  • Stock exchange data showed the institutional tranche was subscribed about 3.32 times, the retail portion was 69% subscribed, and the overall issue covered roughly 1.2 times.
  • Reporting said the deal was run with tightly controlled timing and limited internal disclosure, and that the advising banks agreed not to charge advisory fees.
  • The sale brings LIC into compliance with SEBI’s public-holding rule and adds materially to government disinvestment receipts while leaving LIC shares little changed in trading.