The Indian government has exercised the entire green shoe option for its offer for sale (OFS) of a stake in Life Insurance of India (NSE:LICI, BOM:543526), taking the total stake on sale to 6.5%, after the issue was oversubscribed on Tuesday, according to an Indian bourse filing the same day.
The government launched the OFS to divest a 2.5% stake, with an option to sell an additional 4%, on Tuesday. The floor price for the issue has been fixed at 382 Indian rupees per share.
The issue was subscribed 3.32 times its base size, Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a social media post.
With this, the offer size was expanded to 822.2 million equity shares, of which 82.2 million shares, or 10% of the offer, will be available to retail investors on Wednesday. Additionally, up to 5 million equity shares will also be offered to eligible employees of the insurer. Both of these categories will be offered at 373.10 rupees per equity share.
Meanwhile, the cut-off price for non-retail investors remains unchanged at 383.10 rupees per equity share.
If the entire 6.5% stake is sold, the government is expected to raise up to 314 billion rupees.
The OFS opened for non-retail investors on Tuesday, while retail investors and eligible employees can bid on Wednesday.