Government to sell minority stake in LIC

The government is working on further stake sale in Life Insurance Corporation (LIC) and the disinvestment department would work out finer details of the transaction, sources said.

The government currently holds 96.5 per cent stake in LIC. It had sold 3.5 per cent through an initial public offering (IPO) in May 2022 at a price band of Rs 902-949 a share. The share sale fetched the government around Rs 21,000 crore.

Sources said the government has given its approval for further share sale in LIC through the OFS route and the discussions are still in the nascent stage.

"It is up to the disinvestment department to look at the market condition and conclude the stake sale," a source said The government needs to offload another 6.5 per cent stake in the public sector life insurer to meet the mandated 10 per cent public shareholding requirement by May 16, 2027.

The quantum of stake sale, price and timing would be decided in due course, the source added.

LIC's current market capitalisation stands at Rs 5.85 lakh crore.

Shares of LIC were trading at Rs 924.40 apiece, down 2.27 per cent over the previous close on the BSE.