LIC share price falls after centre gives nod for offer for sale. Do you own?

Life Insurance Corporation of India (LIC) share price fell more than a per cent to ₹935.50 apiece in Thursday's trading session after reports revealed that government approval has been granted for an Offer for Sale (OFS) in the company.

LIC share price opened at ₹941 apiece in early morning session on July 10, as compared to ₹946 on Wednesday. The stock has rallied over 12 per cent in six months, however, has descended nearly 11 per cent in one year.

The Central government has given the green light to an offer-for-sale in LIC as part of its broader strategy to meet disinvestment targets and unlock the value of the insurance giant, according to a report by CNBC-TV18.

As per the report, the Centre currently owns 96.5 per cent of the state-owned company, while the remaining shares are held by public investors. With a market capitalization nearing ₹6 lakh crore, offloading just a 1 per cent stake could generate around ₹6,000 crore for the government, the source noted.

If approved, this OFS would mark a significant step in the government’s disinvestment strategy for the ongoing financial year, sources were quoted as saying.

It was earlier reported that the government intends to divest a 6.5 per cent stake in the company in multiple phases over the next two years, aiming to meet SEBI’s minimum public shareholding requirements and facilitate planned share sales.

In May last year, the Securities and Exchange Board of India (SEBI) gave LIC the go-ahead to reach a public shareholding level of 10 per cent by 2027.

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