Kathmandu— India's government has decided to exercise its green shoe option, increasing the stake sale of Life Insurance Corporation (LIC) in light of overwhelming demand from institutional investors. The Offer for Sale (OFS), which began on Tuesday, saw a subscription rate of 3.32 times the base size, reflecting robust investor confidence and the depth of India's capital markets.

Government Launches OFS

The government launched the Offer for Sale (OFS) on Tuesday exclusively for non-retail investors, offering a 2.5% stake in LIC. The base size of the offer is set at Rs 382 per share, with an additional 4% green shoe option available to meet strong demand. This initiative aims to help the government reduce its holding while providing institutional and retail investors an opportunity to participate in the stake sale.

Institutional Demand Exceeds Expectations

The OFS received a subscription rate of 3.32 times its base size from institutional investors, indicating strong market confidence in LIC's performance and future prospects. Arunish Chawla, Secretary at the Department of Investment and Public Asset Management (DIPAM), highlighted this enthusiastic participation as evidence of India’s robust capital markets.

Chawla urged retail investors to participate when bidding opens for them on Wednesday.

(With inputs from ANI)

Originally published on abcnews.com.np.