LIC OFS Opens Today: Govt to Sell Up to 6.5% Stake; Check Floor Price

The government has launched an OFS in LIC to sell up to a 6.5% stake at a floor price of ₹382 per share. Here's everything investors need to know about the offer.

Revati Krishna

Published: 4 Aug 2026, 11:21 AM IST (1 week ago)

Last Updated: 4 Aug 2026, 11:32 AM IST (1 week ago)

3 min read

Quick Summary

LIC Offer for Sale: The Central Government announced an Offer for Sale (OFS) for LIC starting August 4, 2026, offering up to a 6.50% stake at a floor price of ₹382 per share. The initiative helps meet SEBI’s Minimum Public Shareholding norms while offering retail investors a ₹10 discount per share.

LIC Offer for Sale: The Central Government has announced an Offer for Sale (OFS) to disinvest a portion of its stake in Life Insurance Corporation of India (LIC).

LIC’s Share is trading 7.56% lower on 4th August in the morning trading session. LIC has delivered -7% year to date and -12% in the last 1 year from 4th Aug 2025 to 4th Aug 2026

As of 4 Aug, 10.57 PM

What is the government selling, and how big is the offer?

The government is putting up a base offer of 2.50% equity in LIC, which equals roughly 31.62 crore shares. It also holds an option to sell an additional 4.00% stake (around 50.60 crore shares) if demand is strong. Taking both together, the total stake sale can reach up to 6.50%.

What is the floor price of LIC OFS, and do retail investors get a discount?

The floor price for the share sale has been set at ₹382 per equity share. If you are a retail investor or an eligible employee, you get a discount of ₹10 per share off the cut-off price. For retail buyers, the maximum bidding limit is set at ₹2,00,000.

What is the bidding timeline for different investors?

The offer is split across two consecutive trading days:

August 4, 2026 (T Day): Bidding opens exclusively for Non-Retail institutional and corporate investors.
August 5, 2026 (T+1 Day): Bidding opens for Retail Investors and eligible employees. Non-retail investors carrying forward unallotted bids can also participate.

How does this compare to LIC IPO?

In May 2022, the government conducted LIC's historic Initial Public Offering (IPO), selling a 3.5% stake in a price band of ₹902–₹949 per share to raise about ₹21,000 crore. The current OFS comes at a lower floor price of ₹382, reflecting post-listing valuation adjustments while offering a fresh, discounted entry point for market participants.

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Where do overall disinvestment receipts stand so far from GOI?

So far in the current fiscal year, the Centre has mobilized ₹21,201.13 crore through strategic stake sales and OFS issuances across public sector undertakings (PSUs) alongside SUUTI remittances. Here is the official breakdown provided by DIPAM:

Name of CPSE / Entity	% Stake Divested	Method of Disinvestment	Receipts (₹ Crore)	Govt Shareholding Post-Disinvestment (%)
Central Bank of India	8.08%	OFS	2,266.13	81.19%
Coal India	2.00%	OFS	5,542.36	61.13%
NHPC	6.01%	OFS	4,357.36	61.39%
NLC India	2.73%	OFS	1,223.57	69.47%
General Insurance Corporation of India (GIC Re)	5.00%	OFS	3,090.47	77.40%
IRFC	1.75%	OFS	2,081.27	82.90%
Cochin Shipyard	4.58%	OFS	1,711.24	63.33%
Indian Medicines Pharmaceuticals Corporation Ltd. (IMPCL)	98.11%	Strategic Disinvestment	118.73	0.00%
Remittance from SUUTI	—	Other	810.00

When are LIC's upcoming Q1 earnings scheduled?

In addition to the OFS, LIC is set to report its Q1 FY27 financial results on Thursday, August 6, 2026. The Board of Directors will meet on August 6 to consider and approve the unaudited standalone and consolidated results for the quarter ended June 30, 2026, followed by an investor and analyst conference call at 7:00 PM IST.

Why is the government selling its stake right now?

This move is primarily aimed at complying with SEBI's Minimum Public Shareholding (MPS) regulations. Listed entities are required to maintain a minimum public shareholding, and this OFS helps bring LIC closer to those mandated regulatory standards.

Conclusion

This OFS provides a notable opportunity if you want to add shares of India's largest insurer to your portfolio at a discounted rate. With a fixed floor price and an extra discount for retail buyers, we are seeing a clear regulatory step that expands public ownership in LIC.

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