The non-retail portion of state-owned Life Insurance Corporation of India's (LIC) offer for sale (OFS) was subscribed 55.10% as of 12 noon on Tuesday, the first day of bidding for institutional investors, according to BSE data.Investors bid for 15.68 crore shares against the shares reserved for the non-retail category during the bidding window.
The retail portion will open on Wednesday, August 5, LIC announced.The government on Monday declared plans to sell a 2.5% equity stake in LIC through the base offer, with an option to sell an additional 4% under the green shoe option.
Following the announcement, LIC crashed 9% to Rs 390 per share.If the green shoe option is fully exercised, the OFS will comprise 82 crore shares with a total value of nearly Rs 31,410 crore at the floor price.
The issue opened for non-retail investors on August 4, while retail investors will be able to bid on August 5.The stake sale is the latest in the government's divestment programme after recent share sales in public sector companies including Coal India, NHPC and NLC India.
The Life Insurance Corporation of India (LIC) is a cornerstone of the nation's financial sector, serving as India's largest life insurer and the country's second largest public sector enterprise by market capitalization.
