EconomyBanking_Regulation
News 0 of 22

Govt to Sell 6.5% Stake in LIC at ₹382/Share, Raises ₹31,000 Crore via OFS

EconomyHIGH
Target:UPSC GS-IIIMPSCBankingSSC GATeachingPrelims HighMains MediumStatic GK Link
03 Aug 2026
~2 min
Source: The Hindu
Key Data:Up to 6.5% stakeFloor price ₹382/shareExpected proceeds ₹31,000 croreCurrent govt holding 96.5%OFS date: Aug 4 (non-retail), Aug 5 (retail) 2026
Bodies:DIPAMLIC
Practice MCQs from today's news ▸
What This Article Covers

1.The Government of India is divesting a 2.5% stake (base offer) plus an additional 4% via a green shoe option in LIC, totaling up to 6.5%.

2.The offer for sale (OFS) is priced at ₹382 per share, and is expected to raise around ₹31,000 crore for the government.

3.The issue opens for non-retail investors on August 4, 2026, and for retail investors on August 5, 2026, highlighting the government's continued focus on disinvestment.

The Big Picture
Prelims · HighMains · Medium

The Government of India is selling up to 6.5% of its stake in Life Insurance Corporation of India (LIC) at a floor price of ₹382 per share, aiming to raise approximately ₹31,000 crore for the exchequer. This disinvestment drive is a key part of the government's target to meet its fiscal goals for the current financial year.

Exam Lens

Quick Exam Facts From News

Stake being soldUp to 6.5% (2.5% base + 4% green shoe option)
Floor price per share₹382
Expected proceeds≈ ₹31,000 crore
Current government holding in LIC96.5%
Offer opens for non-retail investorsAugust 4, 2026
Offer opens for retail investorsAugust 5, 2026
Total disinvestment proceeds so far in FY 2026-27₹21,082 crore (from 7 PSUs & SUUTI)

1-Minute Revision

  • ›Stake being sold: Up to 6.5% (2.5% base + 4% green shoe option)
  • ›Floor price per share: ₹382
  • ›Target this Data: Up to 6.5% stake in LIC at ₹382/share; expected proceeds of ₹31,000 crore.
  • ›Target this Nodal Body: Department of Investment and Public Asset Management (DIPAM), Ministry of Finance.
  • ›Target this Legal Point: Offer for Sale (OFS) mechanism; Green Shoe Option (over-allotment).

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which ministry/department is responsible for executing the disinvestment of LIC shares through the Offer for Sale (OFS)?

Q2Statement-basedHard

Consider the following statements regarding the government's disinvestment in LIC:

1. The government is selling a total of up to 6.5% stake in LIC through an Offer for Sale.

2. The floor price for the LIC share is set at ₹382, and the offer opens for retail investors on August 4, 2026.

3. The proceeds from this disinvestment are expected to add approximately ₹31,000 crore to the government's kitty.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the news, what is the current percentage of government holding in LIC before the current disinvestment?

Q4Application/ImpactMedium

What is the primary objective of the government's disinvestment of LIC shares as highlighted in the news?

All 25 MCQs ▸
Read original article from The Hindu
You finished this topic
Practice 3 MCQs from this newsNext Article
Explore Related Topics
EconomyView Topic MCQs →
Next SC Strikes Down 2021 OM on Retrospective ECs, EIA Process Reaffirmed
Related Current Affairs
Economy Current Affairs

LIC OFS: Govt Sheds 6.5% Stake, Mops Up ₹31,000 Cr Towards FY27 Divestment Target of ₹80,000 Cr

The government is selling 6.5% of its stake in LIC via Offer for Sale (OFS), expected to raise approximately ₹31,000 crore. The OFS was oversubscribed 3.32 times by institutional investors, reflecting strong market confidence. This move brings the government closer to its FY27 disinvestment target of ₹80,000 crore, with total disinvestment receipts so far at ₹21,201.13 crore.

Economy Current Affairs

SEBI Grants In-Principle Approval for NSE Settlement at ₹1,491.21 Crore for Past Lapses

SEBI has accepted NSE's settlement offer of ₹1,491.21 crore to resolve long-standing regulatory lapses related to governance failures and inequitable access for trading members. This in-principle approval is a critical step for NSE ahead of its mega IPO, signaling regulatory closure on past issues.

Economy Current Affairs

RBI to Launch Polymer Banknotes of ₹10 and ₹20 from FY28, Trial of 100 Crore Pieces Each

The RBI will introduce polymer (plastic) banknotes of ₹10 and ₹20 denominations from the start of FY28 to enhance durability and expand currency capacity. A trial of 100 crore pieces of each denomination (total ₹3,000 crore) will be conducted, with field tests for Indian climate conditions before full-scale circulation.

Economy Current Affairs

RBI Proactively Assists UCBs: On-tap Licensing, Gold Loan Limits Raised, Deposits ₹6 Lakh Crore

Union Cooperation Minister Amit Shah endorsed RBI's proactive support for urban cooperative banks, including on-tap licensing and raised gold loan limits. This signals a new era of cooperation between UCBs and the central bank, crucial for the sector's growth and financial inclusion.

Economy Current Affairs

FAST-DS Launched: Disclose Undisclosed Foreign Income Up to Rs 1 Crore, Assets Up to Rs 5 Crore Till Dec 31, 2026

The Income Tax Department has launched the Foreign Assets of Small Taxpayers – Disclosure Scheme (FAST-DS), a one-time voluntary window from August 16 to December 31, 2026, for small taxpayers to disclose previously undeclared foreign income (up to Rs 1 crore) and assets (up to Rs 5 crore). This scheme offers immunity from prosecution under the Black Money Act, 2015, and is a critical opportunity for students, tech professionals, and relocated NRIs to regularize their foreign holdings.

Economy Current Affairs

NCGTC Confirms ECLGS 5.0 Guarantee Cover of ₹2.5 Lakh Crore on First-Come-First-Served Basis for MSMEs

NCGTC has informed banks that ECLGS 5.0 – a credit guarantee scheme for MSMEs and non-MSMEs affected by the West Asia war – will be implemented only until the ₹2.5 lakh crore guarantee cover is exhausted, on a first-come-first-served basis. Non-MSME loans have been stopped to prioritise MSMEs. This is a key development for banking and economy exams, highlighting the limited nature of the guarantee and the government's focus on MSME liquidity.

Economy Current Affairs

PMJDY: 15.36 Crore Accounts Inoperative, 5.72 Crore Have Zero Balance as per RTI

RTI data reveals that despite 59 crore PMJDY accounts, every fourth is inoperative and 5.72 crore have zero balance, signaling gaps in financial inclusion beyond account opening. UP leads in both zero-balance and inoperative accounts, highlighting regional disparities.

Economy Current Affairs

CPI Inflation Hits 4.8% (20-Month High), Raises Odds of RBI Rate Hike in October MPC Meet

August CPI inflation surged to a 20-month high of 4.8%, driven by food prices rising 5.7%. This increases the probability of an RBI rate hike in the October MPC meeting, especially with global central banks hiking rates and Brent crude above $100/barrel. For UPSC/Banking aspirants, this is a key data point linking inflation dynamics, monetary policy, and global spillovers.

Start Today's Quiz(25 Qs)