Confirming the timeline, Secretary, DIPAM in a put up on X (formally twitter) wrote, “Provide for Sale in LIC opens tomorrow for Non-Retail buyers. Retail buyers can bid on Wednesday. Authorities affords to disinvest 2.5% fairness with an extra 4% as a inexperienced shoe choice. Flooring worth has been fastened as Rs 382 per share. This may assist obtain MPS milestones forward of schedule.”
Underneath the proposed construction, the federal government is placing up a base concern of two.5% fairness, retaining the choice to dump an extra 4% via a greenshoe mechanism if institutional demand stays sturdy. Bids submitted beneath the ground worth of ₹382 won’t be accepted, with the ultimate allotment worth decided by demand over the two-day window.
The federal government at present holds a 96.5% majority stake within the insurance coverage behemoth after promoting a 3.5% stake throughout its Could 2022 market debut. The Securities and Change Board of India (SEBI) has mandated LIC to lift its public shareholding to at the very least 10% by Could 2027, with an final goal of reaching a 25% free float.
The recent OFS tranche strikes the Centre nearer to assembly these statutory benchmarks whereas increasing secondary market liquidity.
