Centre Raises Approximately ₹31,552 Crore Through Offer for Sale Conducted on August 4–5, 2026
New Delhi : The Government of India, the promoter of Life Insurance Corporation of India (LIC), has sold 82,23,33,558 equity shares of the country’s largest life insurer through an Offer for Sale (OFS), raising approximately ₹31,552.34 crore.
The transaction was conducted through the OFS mechanism on the BSE and NSE on August 4 and 5, 2026. Following the sale, the government’s shareholding in LIC has declined to 90%.
LIC disclosed details of the transaction under the SEBI (Prohibition of Insider Trading) Regulations on August 7, 2026.
Key Details of LIC OFS
| Particulars | Details |
|---|---|
| Shares Sold | 82,23,33,558 |
| Gross Consideration | Approx. ₹31,552.34 crore |
| Sale Dates | August 4–5, 2026 |
| Mode of Sale | Offer for Sale (OFS) |
| Stock Exchanges | NSE & BSE |
| Pre-Sale Holding | 12,20,72,45,562 shares |
| Post-Sale Holding | 11,38,49,12,004 shares |
| Post-Sale Stake | 90.00% |
Government Raises Over ₹31,500 Crore
Through the OFS, the government sold more than 82.23 crore LIC shares, generating gross proceeds of approximately ₹31,552 crore.
The transaction forms part of the government’s broader disinvestment strategy, aimed at increasing public shareholding in listed public sector companies while also generating resources through strategic stake sales.
Despite the substantial divestment, the government continues to retain an overwhelming majority holding of 90% in LIC.
OFS Included Base Offer and Oversubscription Option
The OFS was structured with a base offer of up to 2.50% of LIC’s paid-up equity capital.
An additional oversubscription option of up to 4.00% was also available, depending on demand.
The offering additionally included an employee reservation of up to 50 lakh equity shares, providing eligible LIC employees an opportunity to participate in the share sale.
Government Remains Majority Shareholder
Following completion of the transaction, the President of India, acting through the Ministry of Finance, continues to hold 11,38,49,12,004 LIC shares, representing 90% of the company’s equity capital.
The government’s continued 90% holding means it remains the controlling shareholder of LIC.
At the same time, the OFS increases the proportion of LIC shares available with public shareholders, potentially improving the company’s public float and market participation.
Transaction Conducted Through BSE and NSE
The OFS was executed through the designated Offer for Sale windows of the BSE and NSE, in accordance with applicable SEBI regulations and guidelines.
The transaction was subsequently disclosed by LIC through the regulatory filing made on August 7, 2026, under Regulation 7(2) of the SEBI (PIT) Regulations.
What the Stake Sale Means for LIC
The government’s latest divestment is significant for LIC and India’s capital markets for several reasons.
Higher Public Shareholding
The sale increases the number of LIC shares available to investors in the public market, potentially improving market liquidity and broadening investor participation.
Large-Scale Government Fundraising
The transaction generated approximately ₹31,552 crore, making it a significant government stake-sale transaction.
Government Retains Control
Despite selling more than 82 crore shares, the government continues to hold 90% of LIC, retaining decisive control over the company.
Greater Market Participation
The increased public float could provide institutional and retail investors with greater opportunities to participate in LIC’s long-term growth story.
A Major Milestone in LIC’s Disinvestment Journey
The latest OFS represents another important step in the government’s efforts to gradually increase public participation in LIC, while continuing to retain majority ownership.
With the government’s holding now at 90%, the transaction marks a significant development in LIC’s journey as a publicly listed insurance company and India’s broader capital-market disinvestment programme.
