The share sale offering from the Life Insurance Corporation (LIC) drew robust institutional interest during its opening session, securing a subscription of 331.86 percent in the category reserved for institutional buyers. Under the current divestment plan, the government is offloading more than 28.46 crore shares of the insurance major at a floor price of 382 rupees per share.
Institutional Buyers Bid for Over 94 Crore Shares
Institutional investors placed bids for more than 94.45 crore shares at an indicative price of 383.84 rupees per share, accounting for 331.86 percent of their allocated portion. The bidding window remained operational until 3.30 PM. This category typically comprises mutual fund houses, commercial banks, and large corporate entities.
Retail Bidding Scheduled for Wednesday
Retail investors will get the opportunity to bid for Life Insurance Corporation shares on Wednesday as the offer for sale moves to the next phase. The central government is diluting a 6.5 percent stake, representing over 82.22 crore shares, in the nation's largest insurer. This stake sale is expected to fetch 31,000 crore rupees for the exchequer while helping the insurer meet the minimum public shareholding requirement ahead of schedule.
Government Shareholding and Regulatory Timeline
Market regulator SEBI had granted the insurer until May 16, 2027, to achieve a minimum public shareholding of 10 percent. Prior to this share sale, the government held a 96.5 percent stake in the firm.
Share Price Declines Amid Share Sale
The stock experienced a significant pullback on Tuesday as the share sale progressed. Shares of the insurance giant settled 7.86 percent or 33.35 rupees lower at 391.00 rupees on the BSE. Market participants noted that the discounted pricing structure and technical adjustments weighed on the stock during the session.
Intraday Movement and Market Capitalization
The counter previously closed at 424.35 rupees on Monday and opened lower at 393.10 rupees. During Tuesday's trading hours, the stock touched an intraday high of 402.35 rupees and dipped to a low of 389.00 rupees. The 52-week peak for the stock stands at 468.30 rupees, while the 52-week trough is 361.00 rupees. The overall market capitalization of the country's premier insurer stands at 4,94,614.82 crore rupees based on the latest valuations.
