The Indian government opened an offer for sale of an up to 6.5% stake in Life Insurance Corp. (NSE:LICI, BOM:543526) in a deal that could fetch up to 314.1 billion rupees, according to an exchange filing.
The government will divest an at least 2.5% stake in LIC, or 316 million shares, with an option to offload an additional 4%, or 506 million shares at a floor price of 382 rupees apiece.
The offer price represents a 10% premium to LIC's closing price of 424.35 rupees on Monday.
IIFL Capital Services, BNP Paribas, Goldman Sachs and Motilal Oswal Investment Advisors are serving as brokers of the share sale.
The share sale will help the government meet minimum public shareholding requirements, the Department of Investment and Public Asset Management (DIPAM) said in an X post on Monday.
The stake sale is part of the government's minimum public shareholding goal, which requires all listed companies to maintain at least 25% public float.
As of the end of the June quarter, the government held a 96.5% stake in LIC. Under new listing rules, LIC is required to maintain a public float of 25% within five years from its 2022 listing.
In May 2022, India sold a 3.5% stake in LIC in what was the country's largest initial public offering at the time. The IPO raised 210 billion rupees.



