Shares of Life Insurance Corporation (LIC) tumbled by around 8 per cent on Tuesday, August 4, 2026, as the company announced it will sell up to a 6.5 per cent stake, or 82.22 crore shares, in the state-run insurer through an offer for sale (OFS). The two-day OFS is open for non-retail investors on Tuesday and for retail investors on Wednesday. The floor price for this OFS has been set at Rs 382 per share. If fully subscribed, the sale will add about Rs 31,000 crore to the disinvestment kitty. “Government offers to disinvest 2.5 per cent equity with an additional 4 per cent as a green shoe option,” Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X.
Floor price for OFS
The floor price of Rs 382 is at a 10 per cent discount over the closing price of LIC shares on Monday. The stock had closed at Rs 424.35 on the BSE.
According to the information available, the stake sale will help LIC achieve the minimum public shareholding requirement mandated by market regulator Sebi ahead of schedule.
LIC share price todayย
The stock opened gap down at Rs 393.10, a drop of 7.36 per cent from the previous close of Rs 424.35 on the BSE. Amid a spurt in trading volume by more than 8 times, it touched an intraday low of Rs 390.70, representing a fall of 7.93 per cent. Last seen, the stock was trading at Rs 397.70 with a fall of 6.28 per cent, and the market cap of the company stood at Rs 5,03,090.32 crore.ย ย
Shares of Life Insurance Corporation of India touched an intraday low of Rs 390.40 on the National Stock Exchange (NSE).ย
The counter has been losing over the last two days and has fallen by 5.74 per cent during the period. Life Insurance is trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.ย
The stock has a 52-week high of Rs 468.30 and a 52-week low of Rs 361.ย
Time till May 16, 2027
According to the information available, the market regulator had given LIC time till May 16, 2027, to achieve a minimum 10 per cent public shareholding.
At present, the government holds a 96.5 per cent stake in LIC. It had earlier sold 3.5 per cent through an initial public offering (IPO) in May 2022 at a price band of Rs 902-949 per share, raising about Rs 21,000 crore.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)