Business News | Government Raises Rs 31,552 Crore as LIC Offer for Sale Closes with Overwhelming Investor Response
Get latest articles and stories on Business at LatestLY. With the successful completion of the OFS, the Government has increased LIC's public shareholding to 10 per cent, achieving the minimum public shareholding (MPS) requirement ahead of schedule.
New Delhi [India], August 5 (ANI): The Government has raised Rs 31,552 crore through the Offer for Sale (OFS) in Life Insurance Corporation of India (LIC), with the issue receiving an overwhelming response from both retail and institutional investors, according to a social media post by the Department of Investment and Public Asset Management (DIPAM).
The DIPAM Secretary said the LIC OFS was oversubscribed on both days, following which the Government exercised its entire green shoe option.
With the successful completion of the OFS, the Government has increased LIC's public shareholding to 10 per cent, achieving the minimum public shareholding (MPS) requirement ahead of schedule.
According to the post, 82,23,33,558 shares were allocated under the offer, making it India's largest public offering ever in terms of amount raised.
Also Read | Uttar Pradesh Man Arranges Marriage for Wife and Her Lover After 21 Years of Marriage; Here’s Why.
"Offer for Sale in the Life Insurance Corporation of India (LIC) closed with an overwhelming response from both retail and institutional investors. The issue was oversubscribed on both days, and the Government exercised its entire green shoe option. With this, the public ownership of LIC has increased to 10%, 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 crores, making it India's largest public offering ever. We thank all the investors for their enthusiastic participation and reposing their faith in us," the DIPAM Secretary said on X.
https://x.com/SecyDIPAM/status/2085037448846053768?s=20
LIC shares closed at Rs 393 a share on NSE, up 0.43 per cent today.
Earlier, the Government had announced the OFS of 2.5 per cent equity in LIC, with an additional 4 per cent green shoe option, at a floor price of Rs 382 per share.
The disinvestment was aimed at helping LIC meet the minimum public shareholding (MPS) norms prescribed for listed companies.
The offer opened first for non-retail investors, followed by retail investors the next day. With the issue receiving strong demand across investor categories, the Government exercised the full green shoe option, taking the total sale to its maximum size.
The successful completion of the OFS marks a key milestone in the Government's disinvestment programme, while bringing LIC's public shareholding to the required 10 per cent level ahead of the regulatory deadline. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)