MUMBAI/NEW DELHI: The govt is selling up to 6.5% in LIC, currently worth nearly Rs 35,000 crore ($3.7 billion) through the offer for sale (OFS) route that will be launched on Tuesday and close on Wednesday.
If the 6.5% stake that the govt is offering is fully sold through the offer, the govt would get about Rs 31,400 crore.
This will make the issue the largest OFS for divestment in India.The stake sale will help LIC meet the minimum public shareholding (MPS) norm ahead of schedule, DIPAM secretary Arunish Chawla said in a post on X.
Currently, public shareholding in the life insurance major is at 3.5%, which, post a successful closure of the OFS, would go up to 10%, meeting Sebi’s MPS norm. “This (govt’s stake sale) will help achieve MPS milestones ahead of schedule,” DIPAM secretary said.
In the OFS, while non-retail investors will be allowed to bid on Tuesday, the first day of the offer, retail investors will be able to bid on the last day.Under the base offer, the govt is selling 31.6 crore LIC shares, representing a 2.5% stake, the exchange disclosure said.
