The Government of India launched an Offer for Sale (OFS) of LIC shares to meet minimum public shareholding requirements and boost the disinvestment kitty
GS3Economy · S&T · Environment · Security· Capital markets & SEBI· Prelims·
Why in news
The Government of India launched an Offer for Sale (OFS) of LIC shares to meet minimum public shareholding requirements and boost the disinvestment kitty.
Background
The government is selling up to 6.5% stake (over 82.22 crore shares) of LIC at a floor price of Rs 382/share. Institutional investors bid for over 94.45 crore shares, valued at approximately Rs 36,400 crore.
Facts for Prelims
- FactLIC OFS floor price: Rs 382 per share
- FactTotal shares offered in OFS: up to 82.22 crore
- BodyLIC (Life Insurance Corporation of India) is a government-owned insurance giant
- FactEstimated proceeds for disinvestment kitty: approx Rs 31,000 crore
For Mains
Q. Discuss the significance of disinvestment and Offer for Sale (OFS) mechanisms in achieving India's fiscal goals and improving corporate governance.
Dimensions to cover in your answer
- fiscal deficit reduction
- minimum public shareholding norms
- capital market liquidity
- privatization vs. public service
Keywords: disinvestment · Offer for Sale (OFS) · capital markets · fiscal deficit · public shareholding
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