LIC shares tumble 8 pc as govt to sell 6.5 pc stake via Rs 31,000 crore OFSLIC shares fell nearly 8 per cent after the government launched an Offer for Sale to divest up to 6.5 per cent stake. The government could raise up to Rs 31,000 crore through the sale of up to 6.5 per cent of LIC’s equity if the greenshoe option is fully exercised. However, the stake sale is also a key step towards increasing LIC’s public shareholding and complying with the Securities and Exchange Board of India’s (SEBI) minimum public shareholding norms. The government currently holds 96.5 per cent in LIC, leaving only 3.5 per cent with public shareholders. Under the minimum public shareholding requirements, SEBI has given LIC time until May 2027 to reduce the government’s stake to 90 per cent.