LIC government stake sale and share price performance

2 entries over 2 days, from 5 August 2026 to 6 August 2026.

01
5 August

LIC share price dip following stake sale

LIC share price declined by approximately 8% on the BSE, closing at ₹391 per share.
The decline followed the Government of India's decision to sell a 6.5% stake in LIC via an Offer for Sale (OFS).
The OFS was executed at a 10% discount to the prevailing market price.
The OFS structure included a base offer of 2% equity stake and an additional 4.5% stake option.
This stake sale occurred four years after LIC's initial public offering (IPO), which raised ₹21,000 crore for a 3.5% stake.

02
6 August

LIC share price declined by approximately 8% on the BSE, closing at ₹391 per share.
The decline followed the government's decision to sell a 6.5% stake in LIC via an Offer for Sale (OFS).
The government offered the stake at a 10% discount compared to the prevailing market price.
The OFS structure included a base offer of 2% equity stake and an additional greenshoe option of 4.5%.
This sale occurs four years after LIC's initial public offering (IPO), which raised ₹21,000 crore for a 3.5% stake.

Newest first. A story that ran for 2 days is exactly the kind the mains paper asks about as one question.

Discuss the role of the Offer for Sale (OFS) mechanism in the government's disinvestment strategy and its impact on market volatility for public sector undertakings. 150 words · 6 August
Discuss the significance of Offer for Sale (OFS) as a mechanism for disinvestment in Public Sector Undertakings (PSUs) and its impact on market valuation. 150 words · 5 August

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