Government may sell 2.5-3% stake in LIC to potentially raise as much as Rs 17,000 crore: Report

The Indian government is gearing up to sell a 2.5 per cent to 3 per cent stake in Life Insurance Corporation of India. According to a CNBC-TV18 report, the government is likely to launch a roadshow in two weeks’ time for the disinvestment of its stake in the public insurer. 

Furthermore, the government has appointed Motilal Oswal and IDBI Capital as the brokers to the LIC’s Offer for Sale as part of its disinvestment process, the report says. 

Stake sale amount

As the government is likely to sell 2.5 per cent to 3 per cent in the first tranche, however, the final quantum of the sale will be decided after the roadshow, the report adds. 

From the sale of the reported stake, the government could fetch 14,000 crore to 17,000 crore. 

Current govt shareholding

At present, the Indian government holds 96.5 per cent stake in the Life Corporation of India. According to the SEBI guidelines, LIC needs to increase its public shareholding to a minimum of 10 per cent. For this same, the government is offloading its stake in the public company. 

SEBI has given a deadline of May 16, 2027, to LIC to bring the public stake to 10 per cent.