On this picture illustration, the emblem of Life Insurance coverage Company of India (LIC) is displayed on a smartphone in entrance of summary background on pc display.
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The Indian authorities will promote as much as a 6.5% stake in state-owned Life Insurance coverage Company of India at a ten% low cost to its Monday closing value, because it strikes to adjust to regulatory necessities.
The stake sale will fetch the federal government as much as 314 billion rupees ($3.3 billion) by the provide, which consists of a base dimension of a 2.5% stake and an possibility to promote a further 4% within the nation’s largest insurance coverage firm, LIC stated in a inventory change submitting on Monday.
The provide on the market, priced at 382 rupees per share, will open on Tuesday and finish on Wednesday.
The federal government of India owns a 96.5% stake in LIC, which it must cut back to 75% by 2032 to fulfill the minimal public shareholding necessities.
LIC is the main life insurance coverage firm in India with over 56% market share primarily based on premium earnings. As of the tip of March 2026, the agency had property below administration of 57.29 trillion rupees (about $600 billion).
The federal government had offered a 3.5% stake within the insurer throughout its IPO in 2022, which was among the many largest share points within the Indian markets at the moment, elevating over $2.7 billion.
On a year-to-date foundation, whereas India’s benchmark Nifty 50 is buying and selling 5.25% decrease, shares of LIC are down about 0.5%. Shares of LIC had been buying and selling down almost 9% Tuesday.
Earlier this 12 months, the authorities offered stakes in a number of firms akin to Cochin Shipyard, Indian Railways Finance Corp, NHPC, and Coal India, elevating a complete of 210 billion rupees ($2.2 billion), as per knowledge from India’s Ministry of Finance.
Citi expects the federal government to ramp up its disinvestment receipts to greater than $8 billion in fiscal 12 months ending March 2027—the very best in 7 years, because the state costs shares at massive reductions to make sure that large-sized inventory gross sales discover patrons, with sufficient worth being left on the desk.
