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%
LIC OFS Raises Rs 31,552 Crore and Lifts Public Holding to 10%
The Story in Brief
The Centre raised Rs 31,552 crore by selling shares in Life Insurance Corporation of India through an Offer for Sale. It sold about 82.23 crore shares at a floor price of Rs 382 each. The sale used the green shoe option and raised LIC’s public shareholding to 10%, meeting market rules ahead of schedule. LIC shares later fell more than 1% in early trading, reaching Rs 387.25 on the National Stock Exchange.
National Herald India and DIPAM said the issue was oversubscribed by institutional and retail investors. NDTV Profit reported that the retail portion was undersubscribed. Google News reported the sale as a 6.5% stake disposal worth over Rs 620 billion in wider public sector sales, while other figures were not detailed.
The Indian Opinion
The sale brings non-debt revenue and helps LIC meet public shareholding rules. However, its success should not be judged only by the amount raised or early share movement. The outlets differ on retail demand, so conclusions about investor confidence remain uncertain. Claims that the transaction proves broad fiscal strength, or that a short-term decline signals deeper weakness, would both go beyond the available evidence.
Sources (3): nationalheraldindia.com, news.google.com, ndtvprofit.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
