Govt plans further reduction in LIC stake
The Indian government is set to sell a 6.5% stake in Life Insurance Corporation of India (LIC) over the next two years, aiming to meet SEBI's rule that at least 10% of LIC's shares be publicly owned by May 2027.
The government has approved this plan.
LIC's government ownership post IPO
Right now, the government owns about 96.5% of LIC after selling a small chunk (3.5%) through its IPO in May 2022, which raised ₹21,000 crore at ₹902-949 per share.
This new sale will happen in phases so they can hit that minimum public ownership target.
LIC shares dip slightly
LIC is India's biggest state-run life insurer, offering everything from term plans to pensions and reaching millions across the country through a huge network.
After news of this stake sale broke, LIC shares dipped slightly to around ₹933—down just over 1%.
The move is expected to bring more regular investors on board and could help boost shareholder value in the long run.