Now Reading: LIC OFS raises Rs 31,552 crore and lifts public holding to 10%
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LIC OFS raises Rs 31,552 crore and lifts public holding to 10%
The Centre raised Rs 31,552 crore by selling shares in Life Insurance Corporation of India through an offer for sale, allotting 82.23 crore shares and fully exercising the green shoe option after…
The Centre raised Rs 31,552 crore by selling shares in Life Insurance Corporation of India through an offer for sale, allotting 82.23 crore shares and fully exercising the green shoe option after strong demand, National Herald India and NDTV Profit reported, citing the Department of Investment and Public Asset Management. The floor price was set at Rs 382 a share, and the sale lifted LIC's public shareholding to 10%, meeting the regulatory requirement ahead of its deadline. NDTV Profit reported that the retail portion was undersubscribed at 69.43%, even though the overall issue was oversubscribed across both bidding days, and that LIC shares fell more than 1% in early trading after the sale closed. CNBC's Inside India newsletter reported that this was one of ten state owned company stake sales this year that have together raised more than Rs 620 billion for the government.
Indian Opinion Analysis
NDTV Profit's numbers show a split in demand behind the headline figure: retail bids covered just 69.43% of the retail quota, while non-retail investors bid 1.57 times the shares on offer. CNBC's reporting places the LIC sale inside a wider push, ten state owned companies sold down this year for more than Rs 620 billion, which the economists CNBC quotes describe as a response to fiscal pressure rather than strength. CNBC reports that the government has already met more than 65% of its annual Rs 800 billion disinvestment target.
Coverage: 3 sources, 1 government-critical, 2 neutral
Sources (3): nationalheraldindia.com (neutral report), cnbc.com (government critical), ndtvprofit.com (neutral report)
This brief was synthesised by AI from the 3 sources linked above, so one read covers every framing they carry.
