India’s government has launched a fresh Offer for Sale (OFS) of 6.5% of Life Insurance Corp. of India (LIC) on Aug. 4‑5, setting a floor price of ₹382 and targeting a raise of about ₹314.1 billion (~$3.3 billion) if fully subscribed. The sale, structured with a base stake of 2.5% and a greenshoe option for an additional 4%, will reduce the state’s holding from 96.5% to roughly 90% and raise the public float to 10%, meeting SEBI’s May 16, 2027 deadline for 10% public shareholding.

Arunish Chawla, secretary at DIPAM, framed the transaction around that timeline, noting the OFS will help achieve MPS milestones ahead of schedule. The deal signals India’s willingness to use state asset sales as a policy tool while keeping LIC firmly anchored in the capital markets.

Market reaction was swift: on Aug. 4 the stock fell as much as 8 milli­? 9% to इंटरड-₹390.50, a 10‑11% discount to the previous close. Yet institutional interest was strong, with the non‑retail portion already 53% subscribed.

This sale is part of a broader FY27 divestment target of ₹800 billion, following earlier LIC and other OFS transactions that have raised ₹210 billion this fiscal year.