LIC shares fall after India’s largest OFS closes with oversubscription on both days
Economic Times 11 hrs ago·6 Aug 2026, 6:07 am
The government has successfully completed the sale of a 6.5% stake in Life Insurance Corporation (LIC) via an Offer for Sale (OFS). This massive stake sale, which included exercising a greenshoe option to increase the total size, raised significant capital for the exchequer. The issue was heavily oversubscribed, indicating strong interest from both retail and institutional investors.
This move is a major milestone for LIC as it fulfills a key regulatory requirement. The sale brings the company's public shareholding to the 10% threshold mandated by market regulator Sebi, which is due by May 2027. Despite the successful fundraising, LIC shares closed lower, reflecting broader market volatility and profit-taking by investors who participated in the offer.
Key takeaways
- Category: Orders & Deals.
- Flagged as a high-impact, market-moving story.
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