New Delhi, Aug. 4 -- The government's Offer for Sale (OFS) in Life Insurance Corporation of India (LIC) received an overwhelming response from institutional investors, with the issue subscribed 3.32 times its base size, prompting the government to exercise the green shoe option, Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said on Tuesday.

The government launched the OFS on Tuesday for non-retail investors, while retail investors will be able to bid on Wednesday. The government is offering a 2.5 per cent stake in LIC, with an additional 4 per cent green shoe option, taking the potential stake sale to as much as 6.5 per cent.

The floor price for the OFS has been fixed at Rs 382 per share. The stro...