Centre Plans 6.5% LIC Stake Sale
The Union government will sell up to a 6.5% stake in Life Insurance Corporation of India through an offer for sale, potentially raising about ₹31,410 crore.
LIC Stake Sale Opens to Investors
The offer includes a base sale of 2% of LIC’s equity, with the government retaining an option to sell an additional 4.5% if investor demand is sufficient.
Non-retail investors can participate during the first day of the offer, followed by retail investors on the second day. The government has fixed a floor price of ₹382 per share for the transaction.
If fully subscribed, the offer will involve approximately 82.22 crore LIC shares and raise an estimated ₹314.1 billion. The transaction represents the government’s first follow-on divestment in LIC since the insurer’s stock market listing.
Government Holding in LIC Falls
The Centre currently owns 96.5% of LIC after selling a 3.5% stake through the company’s initial public offering in May 2022. That IPO raised around ₹21,000 crore and remains India’s largest public share sale.
Completion of the latest offer would reduce the government’s holding to 90% while increasing LIC’s public shareholding from 3.5% to 10%.
The sale does not involve LIC issuing new shares. Instead, the government is selling part of its existing holding directly through the stock exchanges.
LIC Public Shareholding Deadline Nears
The transaction is intended to help LIC meet the minimum public shareholding requirement prescribed for the listed insurer. The company has until May 16, 2027, to increase its public float to at least 10%.
The stake sale also forms part of the Centre’s wider disinvestment and asset-monetisation programme. The government has set a target of ₹80,000 crore for the 2026-27 financial year and has already raised about ₹21,200 crore through stake sales in public-sector companies.
