Informist, Wednesday, Jul. 9, 2025

NEW DELHI – The finance ministry has kicked off the process to divest more stake in Life Insurance Corp. of India Ltd., a senior finance ministry official said Wednesday. The discussion are still in nascent stage and there is no timeline for the process to be completed, the official added.

The official said Department of Financial Services has given its nod to Department of Investment and Public Asset Management to look into the stake sale through offer for sale route. "It is up to the disinvestment department to look at the market condition and conclude the stake sale," the official said.

The government needs to offload another 6.5% stake in the life insurer to meet the mandated 10% public shareholding requirement by 2027. Currently, the government holds 96.5% stake in LIC, after the initial public offering of 3.5% stake in May 2022. The government had raised around INR 210 billion through the IPO.

At current market price, the government may get about INR 390 bln rupees for the 6.5% stake in LIC. On Wednesday, the shares of LIC ended 0.1% lower at INR 946 on the National Stock Exchange. End

Reported by Sagar Sen

Edited by Akul Nishant Akhoury

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