This document is a formal notice issued by the Government of India, Ministry of Finance, Department of Financial Services, to the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE). It serves as an announcement and contains the terms for a proposed Offer for Sale (OFS) of equity shares in Life Insurance Corporation of India (LIC).

The Seller is the President of India acting through the Department of Financial Services, Ministry of Finance, Government of India, who is the promoter of LIC.

The purpose of the OFS is to achieve the minimum public shareholding (MPS) in LIC as prescribed under Rule 19(2)(b) and Rule 19A of the Securities Contracts (Regulation) Rules, 1957, and Regulation 38 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The OFS is conducted under the SEBI framework for OFS through the stock exchange mechanism.

Key Offer Details

  • Stock Exchanges: BSE and NSE
  • Designated Stock Exchange: BSE Limited
  • Designated Clearing Corporation: NSE Clearing Limited
  • Seller's Brokers: IIFL Capital Services Limited (Settlement Broker), BNP Paribas Securities India Private Limited, Goldman Sachs (India) Securities Private Limited, and Motilal Oswal Investment Advisors Limited.
  • Floor Price: ₹382 per equity share.

Offer Structure and Size

The offer consists of two components:

1. Base Offer Size: Up to 31,62,49,885 equity shares, representing 2.50% of LIC's total paid-up equity share capital.

2. Oversubscription Option: An option to additionally sell 50,59,99,816 equity shares, representing 4% of the total paid-up capital.

If the oversubscription option is fully exercised, the total offer size will be 82,22,49,701 equity shares, representing 6.50% of the total paid-up capital. The Seller will intimate the stock exchanges of its decision to exercise this option by 5:00 PM on T day (August 4, 2026).

Employee Offer

A separate Employee Offer of 50,00,000 equity shares (0.04% of paid-up capital) may be made to eligible LIC employees, subject to competent authority approval. Each eligible employee can apply for shares worth up to ₹500,000, with a maximum allotment limit of ₹200,000 per employee (which may be increased proportionally in case of undersubscription).

Offer Schedule and Allocation

The offer will take place over two days on a separate window of the stock exchanges:

  • T Day (August 4, 2026): Bidding from 9:15 AM to 3:30 PM IST. Open only to non-retail investors. These investors can indicate a willingness to carry forward un-allotted bids to T+1 day.
  • T+1 Day (August 5, 2026): Bidding from 9:15 AM to 3:30 PM IST. Open to Retail Investors, Employees, and non-retail investors who chose to carry forward their un-allotted bids from T day.
Investor Categories and Allocation Rules
  • Retail Investor: An individual investor placing bids for a total value not exceeding ₹200,000 across both exchanges. A minimum of 10% of the Offer Shares are reserved for retail investors.
  • Retail Discount: A discount of ₹10 per share will be applied to the cut-off price for retail investors and employees.
  • Non-Retail Investors: Includes institutional and non-institutional investors. A minimum of 25% of the Offer Shares are reserved for Mutual Funds and Insurance Companies, subject to valid bids.
  • Allocation Methodology: Allocation will be at or above the floor price on a price priority basis at multiple clearing prices. For retail investors, the final allocation price may be below the floor price due to the discount.
  • Single Bidder Cap: No single bidder (except Mutual Funds and Insurance Companies) can be allocated more than 25% of the Offer Shares.
  • Unsubscribed Portions: Any unsubscribed portion in the non-retail category will be available for the retail category, and vice-versa.

Settlement Details

  • Non-Retail Investors (T Day): Settlement for non-institutional investors and institutional investors who deposited 100% upfront is on T+1 day. For institutional investors who did not deposit 100% upfront, settlement follows normal secondary market rules (T+1).
  • Retail Investors/Employees (T+1 Day): Settlement is on T+2 day.
  • Non-Retail Investors on T+1 Day: For carried-forward bids with 100% upfront payment, settlement is on T+1 day. For those without 100% upfront, settlement is on T+2 day.

Conditions for Withdrawal and Cancellation

  • The Seller reserves the right to not proceed with the Offer anytime before it opens on T day, triggering a 10-trading-day cooling-off period.
  • The Offer may be cancelled in full if there is insufficient demand from non-retail investors, a default in settlement, or other specified conditions. Cancellation requests will be accepted by exchanges until 5:00 PM on T day.

Important Information and Disclaimers

The notice includes extensive legal disclaimers clarifying that:

  • This is not a public offer or prospectus.
  • The offer is made in reliance on SEBI OFS guidelines.
  • Bidders must rely on publicly available information.
  • The offer shares have not been and will not be registered under the U.S. Securities Act of 1933 and cannot be offered or sold in the United States except to Qualified Institutional Buyers (QIBs) or in offshore transactions under Regulation S.
  • Detailed representations, warranties, and agreements are required from bidders based on their location (inside or outside the United States).
  • Bidders are responsible for their own tax advice and must indemnify the Seller and Brokers against claims arising from breaches of these representations.