Now Reading: LIC stake sale raises $3.3 billion after institutional demand surges
-
01
LIC stake sale raises $3.3 billion after institutional demand surges
The government raised $3.3 billion by selling shares in Life Insurance Corp. of India, more than doubling the planned offer and making it India’s biggest stock exchange secondary offering. Institutional investors subscribed…
The Story in Brief
The government raised $3.3 billion by selling shares in Life Insurance Corp. of India, more than doubling the planned offer and making it India’s biggest stock exchange secondary offering. Institutional investors subscribed 3.32 times the base 2.5% portion, prompting the government to use its option to sell an additional 4%. Times Now reports the floor price was Rs 382 a share. Retail investors subscribed 69%, while the overall issue was subscribed 1.2 times, according to Mint.
Mint reports that officials kept the launch date, size and price secret, even from some advisers, to limit speculative trading before the sale. The government’s LIC holding will fall to meet the 10% public shareholding requirement well before the May 2027 deadline. None of the four advisers charged an advisory fee, Mint reports.
The Indian Opinion
The easy story is that a 3.32-times institutional bid proves universal confidence in LIC, while the opposite claim blames every price fall on a flawed sale. Neither fits the record. Demand was strong for the base offer, but retail subscription was below full and the overall issue was modestly subscribed. The useful test is what LIC shares do after the extra supply is absorbed, not the first day’s headline number.
Sources (2): livemint.com, timesnownews.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
