India’s offer to sell up to 6.5% of LIC attracted bids covering the enlarged non‑retail allocation 1.28 times on Tuesday, 4 Aug, even as shares closed almost 9% lower. Non‑retail investors bid for about 947.4 million shares against 740 million available, including the government’s oversubscription option. The cut‑off price for the expanded allocation was ₹383.10 a share, according to exchange‑sourced data. LIC shares closed at ₹391.30, down 8.7% from Monday’s ₹428.50 close. The stock fell as much as 9.26% to ₹388.80 during the session, its lowest level in nearly four months, before recovering part of the decline.

The government set a floor price of ₹382, 10.9% below the Monday close, giving investors a lower‑priced route and pulling the market price toward the offer level. The prospect of hundreds of millions of additional shares entering public ownership created a large short‑term supply overhang.

At the floor price, the initial 2.5% sale would raise about ₹12,080 crore, or $1.27 billion. Selling the full 6.5% would generate about ₹31,410 crore, roughly $3.3 billion at current rates, potentially pushing public ownership to 10% and helping India meet its 16 May 2027 milestone.

Institutional demand was strong enough to absorb the entire enlarged non‑retail allocation, and retail bidding on Wednesday will determine how much of the stake is ultimately sold.