MUMBAI: Govt on Tuesday opted to sell an additional 4% in LIC in the ongoing offer for sale (OFS) for the life insurance major as the issue was subscribed 3.3 times on the opening day. Including the green shoe option that takes the total offer size to 82.2 crore shares, govt is expected to mop up about Rs 31,400 crore from the offer at the base price of Rs 382 per share, making it the largest ever OFS in the Indian market. Indications are that the total fund mobilisation could get a further boost on the closing day.Data on NSE showed the indicative price for the offer at Rs 383.84 per share. If all the 82.2 crore shares are sold at that price, the total offer size would be close to 31,600 crore. Officials said that over Rs 28,000 crore has already been mopped up taking the disinvestment receipts for the current fiscal year to Rs 50,000 crore, against the target of Rs 80,000 crore for the full year, excluding asset monetisation, which has generated a little over Rs 6,000 crore so far.“This enthusiastic participation reflects robust investor confidence and the depth of India’s capital markets. In view of the exceptional demand, govt has decided to exercise the green shoe option. Retail investors get to bid tomorrow (on Wednesday). Make the most of this opportunity,” DIPAM secretary Arunish Chawla said in a social media post.On Tuesday, backed by strong institutional demand for LIC shares, govt said it will sell an additional 50.6 crore LIC shares, to take the total offer size to 82.2 crore shares. The base offer was for 31.6 crore shares, translating to 2.5% of the life insurance major’s equity capital.At the close of Tuesday’s bidding in the OFS, data from NSE showed that the total demand was for nearly 94.5 crore shares. Only non-retail investors were allowed to bid on the first day of the offer. On Wednesday, the closing day of the offer, retail investors will also be allowed to participate.In the OFS, 8.2 crore shares, or 10% of the offer is reserved for retail investors and another 50 lakh shares are reserved for LIC’s employees. Since a successful closure of the offer will bring in another 82.2 crore LIC shares in the market, on Tuesday on BSE the stock closed nearly 8% lower at Rs 391, compared to the offer price of Rs 382.
