Taking to the social media platform X, DIPAM said that OFS in the Life Insurance Corporation of India (LIC) closed with an overwhelming response from both retail and institutional investors. 

“With this the public ownership of LIC has increased to 10 per cent and it has achieved this critical milestone ahead of schedule. A total of 82,23,33,558 shares have been allocated for an amount of Rs 31,552 crore, making it India’s largest public offering ever, it added.

In addition, the transaction is the largest public offering in India’s capital markets in terms of issue size.

The government had initially offered to sell a 2.5 per cent stake in LIC along with a green shoe option of up to 4 per cent in the event of strong investor demand. 

Moreover, the floor price for the OFS was fixed at Rs 382 per share.

Strong demand from investors enabled the government to fully exercise the green shoe option and increased the size of the offer and raising public shareholding in LIC to 10 per cent, in compliance with the minimum public shareholding norms.

The OFS opened for non-retail investors on August 4, while retail investors bid on Wednesday.

Additionally, DIPAM thanked investors for their participation, saying the strong response reflected confidence in LIC and the government’s disinvestment programme in a post on X.

LIC, India’s largest life insurer, was listed on the stock exchanges in May 2022 after the government diluted a part of its stake through an initial public offering. The latest OFS further reduces the Centre’s holding while bringing the insurer in line with the Securities and Exchange Board of India’s minimum public shareholding requirement.

Shares of LIC were trading lower at Rs 387.25 — a decrease of over 1 per cent — hitting an intraday low on Thursday in early trade on the NSE.