LIC Stake Sale: Government Approves Offer for Sale to Boost Public Shareholding
The Indian government has approved an Offer for Sale (OFS) for LIC of India to increase public shareholding. The government currently holds 96.50% stake in LIC, 21.50% above Minimum Public Shareholding norms. Every 1% stake sale could potentially fetch around ₹6,000.00 crore. SEBI has granted LIC approval to achieve 10% public shareholding by 2027. Details on the size, timing, and structure of the stake sale are awaited.

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The Indian government has taken a significant step in its disinvestment strategy by approving an Offer for Sale (OFS) for the LIC of India . This move is aimed at increasing public shareholding in one of India's largest financial institutions.
Government's Disinvestment Drive
According to government sources, the approval for an OFS of Life Insurance Corporation of India (LIC) shares has been granted. The government currently holds a 96.50% stake in LIC, which is 21.50% higher than the Minimum Public Shareholding norms. This leaves significant room for disinvestment.
Potential Financial Impact
While the exact details of the stake sale are yet to be announced, initial estimates suggest that the move could be financially significant:
- Every 1% stake sale in LIC of India could potentially fetch around ₹6,000.00 crore for the government.
- This indicates the substantial value of LIC of India and the potential impact of the disinvestment on government finances.
Regulatory Compliance
The Securities and Exchange Board of India (SEBI) has granted LIC approval to achieve 10% public shareholding by 2027. This OFS is likely part of the strategy to meet this regulatory requirement.
Awaiting Further Details
The financial markets and investors are now eagerly awaiting more information on:
- The size of the stake to be offered
- The timing of the OFS
- The structure of the stake sale
These details are expected to be announced soon, providing clarity on the scope and potential impact of this disinvestment move.
Implications for Investors
The government's focus on increasing public shareholding through this OFS could present an opportunity for individual and institutional investors to own a piece of India's largest life insurer. This aligns with the broader goal of widening the investor base in the Indian stock market.
As the situation develops, market participants will be closely watching for further announcements regarding the LIC of India stake sale, which could have significant implications for both the insurance sector and the broader Indian financial markets.
Historical Stock Returns for LIC of India
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-0.09% | -1.25% | -1.76% | +12.20% | -8.36% | +8.08% |