LIC (NSE: LICI) Trades at ₹391.75, Up 0.12%, as Investors Assess Government Stake Sale and Market Demand

LIC shares traded at ₹391.75 on August 5, 2026, up 0.12% as retail bidding opens. The stock stabilizes after Tuesday’s sharp decline tied to the government’s stake sale announcement. The Centre is selling up to 6.5% of LIC through a two-day Offer for Sale. Retail investors can now place bids at a floor price of ₹382 per share.

LIC Share Price Today: Retail Investors Get Their Turn

LIC shares (LICI.NS) fell as much as 8.86% on Tuesday, August 4, touching ₹390.50 on the NSE intraday. That marked the stock’s lowest level in nearly four months, per Reuters data. Wednesday’s mild 0.12% gain suggests some stabilization as retail bidding began.

The OFS floor price sits well below LIC’s recent trading range.

• Monday’s BSE close: ₹424.35 per share
• Monday’s NSE close: ₹428.50 per share
• OFS floor price: ₹382, a 10% discount

This discount pricing explains Tuesday’s sharp selloff across LIC shares. Sector peers like HDFC Life and SBI Life Insurance often move alongside LIC during major insurance-sector news events like this one.

LIC OFS Details: Floor Price and Subscription Numbers

The government’s OFS comprises a base offer of a 2.5% stake, with a 4% greenshoe option attached. Institutional investors bid on Tuesday for over 94.45 crore shares at an indicative price of ₹383.84. Those bids were valued at approximately ₹36,400 crore, signaling strong early demand.

If fully subscribed, this LIC stake sale could raise around ₹31,000 crore for the government’s exchequer. That would rank among the largest government share-sale transactions completed in recent years.

🧵 LIC OFS Explained: Why the Stock Fell & What Investors Should Know 👇

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The Government of India is selling up to 6.5% stake in LIC through an Offer for Sale (OFS).

💰 Floor Price: ₹382/share

📉 ~10.9% discount to previous close (₹428.50)

But does this mean LIC's…

— Rohan S SEBI RA INH000032382 BSE 5216 (@Chart_Levels) August 5, 2026

Government Stake and Public Shareholding Target

The government currently holds 96.5% of LIC’s total equity. A fully subscribed OFS would reduce that stake to roughly 90%, raising public shareholding to 10%. This move helps LIC meet SEBI’s Minimum Public Shareholding norm before the May 16, 2027 deadline.

LIC’s Upcoming Q1 Results and Market Context

LIC’s board meets Thursday, August 6, 2026, to approve unaudited results for the June quarter. Management will host an earnings call with analysts at 7:00 p.m. IST that same evening. This timing places LIC’s results just one day after the OFS concludes.

This stake sale fits within India’s broader disinvestment strategy for the current fiscal year.

• FY27 divestment target: ₹80,000 crore, per Reuters
• Already raised this fiscal year: approximately ₹20,391 crore
• Recent OFS deals included NHPC, Coal India, and IRFC

LIC first listed in May 2022, when the government sold a 3.5% stake priced between ₹902 and ₹949 per share. That IPO raised roughly ₹21,000 crore for the exchequer at the time.

Final Word

LIC’s stock stabilization on Wednesday suggests investors are absorbing Tuesday’s steep OFS-driven decline reasonably well. Strong institutional demand at ₹383.84 per share indicates confidence in LIC’s long-term valuation, despite the discounted floor price. 

Thursday’s Q1 FY27 results will offer fresh insight into LIC’s underlying business performance. Investors should watch both retail subscription levels and Thursday’s earnings call for the next directional signal on LIC shares.

Disclaimer:

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