India expands Life Insurance Corp. share sale to $3.3 billion after massive oversubscription

India just turned what was already a blockbuster share sale into something considerably larger. The government expanded its Offer for Sale in Life Insurance Corporation of India to raise approximately 314 billion rupees, roughly $3.3 billion, after the original tranche was oversubscribed by 3.32 times. The expanded offering now covers up to 6.5% of LIC’s equity. The mechanics of a mega-sale The OFS opened for non-retail investors on August 4, 2026, with retail investors getting their turn on August 5. The floor price was set at 382 rupees per share, representing a 10% discount to LIC’s last closing price before the announcement. LIC’s share price dropped roughly 8% intraday on the day the OFS was announced. Why India is selling now Two forces are driving this decision. First, there’s the regulatory clock. Indian securities regulations mandate a minimum public shareholding threshold for listed companies. After LIC’s landmark IPO in 2022, which raised $2.75 billion for a 3.5% stake, the government still held a dominant position in the insurer. This latest sale of up to 6.5% is designed to push closer to compliance with those MPS requirements, and ahead of the mandated timeline. Secon...