The Government of India has deferred Life Insurance Corporation's (LIC) planned Offer for Sale (OFS) to the next financial year as it awaits stronger investor demand for the divestment. LIC shares responded positively to the news, closing at ₹818.85 per share, marking a 1.14% increase from the previous day's closing price of ₹809.60. The company's market capitalisation stands at ₹5.18 lakh crore.

OFS Timeline and Postponement

The government's divestment plans for LIC have undergone multiple revisions throughout the financial year. Initial announcements in August 2025 indicated preparations for a 2.5-3% stake divestment through an OFS. By September 2025, reports suggested potential stake sales of 3-5% within the same financial year. November 2025 sources pointed to a likely January 2026 timeline following roadshows.

However, the government has now postponed the LIC OFS, with the stake sale likely to occur only in the next financial year. The divestment may be scheduled after the IDBI Bank divestment process is completed. SEBI has provided the government with a deadline of May 2027 to raise LIC's public shareholding to the mandated 10%.

Current Shareholding Structure

The Government of India maintains dominant control over LIC with significant institutional and retail participation across different investor categories.

Financial Performance Highlights

LIC demonstrated robust financial performance in Q2FY26, showing significant improvement across key metrics compared to the corresponding quarter of the previous financial year.

The company's operating performance has shown steady improvement over the past year. Operating profit increased from ₹6,588 crore in September 2024 to ₹9,492 crore in September 2025, after reaching a peak of ₹21,514 crore in March 2025. The Operating Profit Margin (OPM) expanded from 3% to 4% year-on-year, indicating modest margin improvement despite quarterly volatility.

Strategic Significance

Life Insurance Corporation of India remains the country's largest life insurance company and serves as a key pillar of India's financial system. The company operates through a vast distribution network and maintains strong brand trust among consumers. With its diversified product portfolio, LIC serves millions of policyholders while playing a crucial role in long-term savings and capital market stability. The OFS route enables the government to reduce its stake in public sector companies through the stock market, attracting significant attention from both retail and institutional investors seeking exposure to government-owned enterprises.

Life Insurance Corporation of India witnessed a significant block trade on the National Stock Exchange (NSE), marking notable institutional activity in the insurance sector. The transaction involved a substantial volume of shares and represents one of the key trading developments for the state-owned insurance giant.

Block Trade Details

The block trade executed on NSE involved specific parameters that highlight the scale of the transaction:

Transaction Significance

Block trades typically involve large institutional investors, mutual funds, or significant stakeholders looking to execute substantial transactions without impacting regular market trading. The execution price of ₹850.60 per share reflects the prevailing market conditions at the time of the transaction.

The transaction volume of approximately 195,763 shares represents a meaningful exchange of ownership in Life Insurance Corporation of India. Such block trades are often structured to minimize market disruption while facilitating large-value transactions between institutional participants.

Market Activity

The ₹16.65 crore transaction value demonstrates continued institutional interest in Life Insurance Corporation of India shares. Block trades serve as important indicators of institutional sentiment and provide insights into large-scale investment decisions in the insurance sector.

This trading activity reflects the ongoing participation of institutional investors in Life Insurance Corporation of India, with the specific pricing and volume parameters indicating the current market dynamics surrounding the company's shares.