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The Centre launched its biggest stake sale in Life Insurance Corporation of India (LIC) since the insurer’s landmark 2022 listing, aiming to raise up to $3.3 billion (around ₹31,000 crore) through an Offer for Sale (OFS). The government is offloading up to a 6.5 per cent stake at a floor price of ₹382 per share, nearly 10 per cent below the previous closing price, in a move aimed at widening public ownership and meeting regulatory shareholding norms.
The OFS opened first for institutional investors, with retail investors scheduled to participate in the subsequent phase. If fully subscribed, the government’s stake in LIC will reduce while public shareholding is expected to rise to 10 per cent, helping the insurer comply with the Securities and Exchange Board of India’s minimum public float requirement ahead of the May 2027 deadline.
The disinvestment marks the government’s first dilution of its holding in LIC since the insurer’s IPO and forms part of its broader asset monetisation programme for the current financial year. The Centre has set an ambitious disinvestment target and has already mobilised substantial funds through stake sales in several public sector enterprises. Proceeds from the LIC sale are expected to strengthen government finances while deepening capital market participation in one of India’s largest financial institutions. Early subscription data indicated encouraging demand from institutional investors, signalling continued confidence in the country’s largest life insurer despite the temporary market volatility.