Government to Sell Up to 6.5% Stake in LIC Through OFS; Details on Floor Price and Retail Bidding Available

The Indian government has announced plans to sell up to 6.5% of its stake in the Life Insurance Corporation of India (LIC), with an estimated floor price set at ₹382 per share. This move is part of a larger effort to raise approximately ₹31,000 crore (approximately $3.7 billion) through its disinvestment initiatives.

The share sale is expected to be conducted over a series of days, allowing retail investors to participate by submitting bids. The government aims to enhance liquidity in the market while also capitalizing on the favorable conditions in the financial sector.

LIC, one of Indias largest insurance companies, was partially listed on the stock market last year, marking a significant milestone in Indias privatization efforts. The company has faced various challenges since its initial public offering, including fluctuations in stock prices and competition from private insurers.

This latest stake sale is seen as crucial for the government, especially in light of its fiscal targets set for the current financial year. It reflects the ongoing strategy of the Indian government to raise funds for infrastructure and social spending through disinvestment in state-owned enterprises.

Analysts believe this move may attract a significant number of investors, not only due to the promising valuation at the set floor price but also owing to LICs strong brand recognition in the Indian insurance market. The sale is being closely watched by market participants, particularly in light of the broader economic context and the performance of state-owned enterprises in the stock market.