Why Did LIC Suddenly Fall?
LIC’s fall wasn’t because of a scam. The Government of India sold 6.5% stake through an OFS at a floor price of ₹382 per share, creating short-term pressure on the stock.
But why was the OFS needed?
SEBI norms require listed companies to eventually maintain 25% public shareholding. Because of LIC’s massive 2022 IPO, it was given more time to first reach the 10% public float milestone. This OFS helped LIC achieve that intermediate target ahead of schedule.
Interestingly, the retail portion saw weaker participation, while strong institutional demand drove the overall OFS subscription. That reflects near-term investor caution, not necessarily weakness in LIC’s core insurance business.
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