Kathmandu— The Indian government has initiated an Offer for Sale (OFS) in Life Insurance Corporation of India (LIC), offering a 2.5% stake with an additional 4% green shoe option, setting the floor price at Rs 382 per share. Non-retail investors can bid on Tuesday, while retail investors will have their chance to participate on Wednesday.

Government's Disinvestment Program

The Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla announced the OFS through a social media post. The government aims to divest its equity stake in LIC, India’s largest insurer, as part of its broader disinvestment strategy. This move is expected to help achieve Minimum Public Shareholding (MPS) milestones ahead of schedule.

Details of the Offer for Sale

Under this OFS, the government will initially offer a 2.5% equity stake in LIC. Additionally, it has reserved an extra 4% as a green shoe option to sell more shares if there is strong demand from investors. The floor price for these shares has been set at Rs 382 per share.

On Monday, LIC’s stock closed at Rs 424 on the National Stock Exchange (NSE), indicating that retail and institutional investors may see this as an attractive opportunity.

(With inputs from ANI)

Originally published on abcnews.com.np.