The Indian government plans to sell a stake in Life Insurance Corporation of India (LIC), offering a base size of 2.5% with an option for an additional 4%, at a price of 382 rupees per share. This sale is crucial for the government to reduce its ownership in LIC from 96.5% to the required 75% by 2032.
LIC, which holds over 56% of the life insurance market share in India, had assets under management of approximately $600 billion as of March 2026. The government's previous stake sale during LIC's IPO in 2022 raised over $2.7 billion. Despite a challenging market, with the Nifty 50 index down 5.25% year-to-date, LIC's shares have only decreased by about 0.5%.
The government has previously conducted similar stake sales in other companies, raising a total of $2.2 billion, often at a discount to facilitate the sale and ensure successful disinvestment