Indian Government to Sell Stake in LIC at Discount
The Indian government plans to sell up to a 6.5% stake in the Life Insurance Corporation of India (LIC), the country’s largest insurance provider. This move is part of their effort to meet regulatory guidelines. The shares will be offered at a price 10% lower than Monday’s closing price.
The government hopes to raise around 314 billion rupees (approximately $3.3 billion) from this sale. According to LIC’s recent stock exchange announcement, the offer will include a base sale of 2.5% with the option to sell an additional 4%. The share price for this sale is set at 382 rupees each, and the offer will be open from Tuesday to Wednesday.
Currently, the Indian government holds a 96.5% stake in LIC. To meet the required 75% public shareholding by 2032, it needs to reduce its ownership.
LIC is a major player in the insurance sector, holding over 56% of the market based on premium income. By the end of March 2026, its assets under management are expected to reach 57.29 trillion rupees (about $600 billion).
In 2022, the government sold a 3.5% stake during LIC’s initial public offering (IPO), raising more than $2.7 billion in what was one of the largest share sales in India at the time.
Despite the overall market decline, with the Nifty 50 index dropping 5.25% this year, LIC shares have only fallen about 0.5%. Earlier in the year, the government also sold shares in other companies like Cochin Shipyard and Indian Railways Finance Corp, raising around 210 billion rupees ($2.2 billion). Many of these shares were sold at a discount to attract investors and ensure a smooth disinvestment process.
