Supportive
LIC's second act smarter price tag
The Life Insurance Corporation's monumental offer for sale (OFS) is set to be the largest, with the government divesting a 6.5% stake. This strategic move helps India meet its fiscal 2027 divestment goals and increases public ownership in LIC. Learning from the aggressively priced 2022 IPO, the current OFS is priced more prudently, at a slight discount to current market rates. This allows the government to gauge investor appetite and avoids future divestment deadlines. The approach is deemed "nifty thinking," ensuring better realizations and leaving value for investors, despite muted overall effects on returns due to the size.
Economic Times · ET Bureau · Aug 5, 2026 at 5:37 PM