Government Plans Further LIC Stake Sale
The government intends to further divest its stake in Life Insurance Corporation (LIC) by selling an additional 6.5% to meet the 10% public shareholding mandate. Currently holding 96.5%, the government had previously sold 3.5% via an IPO in May 2022. Details of the divestment strategy are under discussion.
- Country:
- India
The government is preparing to divest additional shares in the Life Insurance Corporation (LIC), aiming to meet a mandatory 10% public shareholding requirement by 2027. The disinvestment department is expected to finalize the details of this transaction, as the plan remains in its initial phase.
Currently, the government possesses a 96.5% stake in LIC, having offloaded 3.5% via an initial public offering (IPO) in May 2022. This previous sale accumulated approximately Rs 21,000 crore. The subsequent sale is set to be executed through the OFS (Offer for Sale) route, although specifics are still pending.
Given LIC's present market capitalisation standing at Rs 5.85 lakh crore, the timing and pricing of the stake sale remain under consideration. The government must divest a 6.5% stake to comply with regulatory requirements by 2027.
(With inputs from agencies.)
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