LIC sale opens: Government offloads up to 6.5% equity starting Tuesday

Why in news

The Government of India is offloading up to 6.5% equity in LIC through an Offer for Sale (OFS) to increase public shareholding.

Background

The government is selling up to 6.5% equity in LIC, including a 2.5% base and a 4% green shoe option. The floor price is set at Rs 382 per share, with the OFS opening for non-retail investors first.

Facts for Prelims

• FactLIC equity sale includes a 4% green shoe option to accommodate high demand.
• FactThe floor price for the LIC equity sale is set at Rs 382 per share.
• BodyLIC (Life Insurance Corporation of India) is a government-owned listed company.

For Mains

Q. Discuss the significance of disinvestment and increasing public shareholding in Public Sector Undertakings (PSUs) for India's capital markets and economic growth.

Dimensions to cover in your answer

• capital market liquidity
• fiscal deficit management
• governance and efficiency
• private sector participation

Keywords: disinvestment · Offer for Sale (OFS) · public shareholding · capital markets · fiscal policy

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