Massive craze for LIC stake sale

India’s insurance giant LIC has received an overwhelming response from investors for its Offer for Sale. Institutional investors alone placed bids worth ₹36,400 crore for the 6.5 percent stake that the central government plans to divest. This marks the first time such a high level of participation has been recorded through the OFS route, highlighting strong market confidence.

The government has put up 82.22 crore shares, equivalent to 6.5 percent stake, for sale. On Tuesday, institutional investors bid for 94.45 crore shares, which is 3.32 times higher than the shares on offer, according to DIPAM Secretary Arunish Chawla. Earlier, the government had raised ₹21,000 crore by selling a 3.5 percent stake through LIC’s IPO four years ago. The strong response is also seen as a positive signal for upcoming IPOs like NSE and Reliance Jio.