Archive · 6 Aug 2026
India's Record $3.3-Billion LIC Share Sale Surprises Market
The government of India owns a huge insurance company called LIC.
It decided to sell some of its LIC shares to raise money.
The government kept the sale a secret until the very last moment so nobody could take advantage.
Even the banks that helped with the sale were not all told about it until late.
One banker was called to a government office in New Delhi without being told why.
The government wanted the stock price to stay steady, so it surprised everyone with the timing.
In the end, it raised a huge amount of money: $3.3 billion.
That made it the biggest share sale of its kind in India.
Big investors wanted more than three times the shares offered in the first part of the sale.
Everyday people, called retail investors, bought about 69% of the shares offered to them.
India raised $3.3 billion through an offer for sale (OFS) of Life Insurance Corp. of India (LIC) shares, the nation's biggest secondary offering through a stock exchange.
The government kept the OFS launch date secret until hours before, telling even some advising banks only shortly before informing the stock exchanges on Monday.
One of the four advising banks was summoned to the divestment department's office in New Delhi without being told why, learning the stake sale would start that evening.
All four banks advised without charging fees after one investment bank agreed to work for free during the request-for-proposal process.
The base portion was subscribed 3.32 times by institutional investors, the retail portion was subscribed 69%, and the overall deal was subscribed 1.2 times.
- Who
- The Indian government's state divestment department, the four banks advising on the deal, and Life Insurance Corp. of India (LIC)
- What
- A $3.3-billion offer for sale (OFS) of LIC shares, India's biggest secondary offering through a stock exchange
- When
- Launch announced at short notice on Monday, institutional subscription on Tuesday, and the retail portion closing Wednesday
- Where
- India, with the deal coordinated from the divestment department's office in New Delhi
- Why
- To sell more government-held shares in LIC while keeping the stock price stable and preventing traders from building positions ahead of the sale
- Company
- Life Insurance Corp. of India (LIC)
- Deal type
- Offer for sale (OFS) of government-held shares
- Amount raised
- $3.3 billion
- Stake offered
- Initial 2.5%, with option to add up to 4% more
- Institutional subscription (base)
- 3.32 times
- Retail subscription
- 69%
- Overall subscription
- 1.2 times
- Advisory fees
- None charged by all four banks