The Indian government is looking to sell a minority stake in Life Insurance Corporation of India (LIC), says a PTI report. The government currently holds a 96.5 percent stake in the public insurance company.
As per the report, the government has given its permission for the sale of a minority stake in the largest insurance company through an Offer for Sale. However, the discussions are at an early stage at the moment.
“It is up to the disinvestment department to look at the market condition and conclude the stake sale,” a source said to PTI. He added that the size of the stake sale, timing and prices would be announced in due course.
Why the stake sale?
LIC launched its IPO in May 2022 and offloaded a 3.5 percent stake, fetching about Rs 21,000 crore. The listed public sector companies are required to have at least 10 percent public ownership.
The government need to offload another 6.5 percent stake in LIC to meet the required guidelines. It has planned to bring down its ownership in LIC to 90 percent by May 16, 2027.
LIC share price
The Life Insurance Corporation of India’s current market capitalisation stands at Rs 5.85 lakh crore. The company’s IPO was launched at a price band of Rs 902- 949 per share, and today its shares trade at Rs 926.90.
Since its debut at the stock exchange, LIC shares have gained 3.4 percent, however, in the past year, LIC’s share price has lost 11 percent of its value.
