India LIC OFS oversubscribed green shoe exercised

The India — India launched an Offer for Sale (OFS) in Life Insurance Corporation (LIC) to divest a 2.5% stake, with an additional 4% green shoe option, potentially selling up to 6.5%. The floor price was set at Rs 382 per share, an 11% discount to the previous close. On the first day, the institutional portion was oversubscribed 3.32 times, prompting the government to exercise the green shoe option. Retail investors were invited to bid the following day. The sale aims to help LIC meet SEBI's minimum public shareholding requirement of 10% ahead of the May 2027 deadline, increasing public float from 3.5% to 10%. The government expects to raise about Rs 31,400 crore if fully subscribed, boosting its FY27 disinvestment programme. LIC shares fell nearly 9% on the day due to the discounted offer.