Government discounted LIC stake sale knocks shares to ₹400.25
Business
LIC's stock dropped sharply on Tuesday morning, down 5.68% to ₹400.25, after the government revealed it's selling part of its stake at a discount.
The selloff spooked investors, with the share price even dipping as much as 8.87% at one point, as everyone braced for more LIC shares hitting the market.
Government sets ₹382 floor price
The government set the floor price at ₹382 per share (10.9% below Monday's closing price), marking its first stake sale in LIC since May 2022.
The plan is to boost public ownership from just 3.5% to almost 10%, meeting regulatory rules by May 2027, possibly raising up to ₹31,400 crore if demand is high enough.