Kathmandu. The central government of India has planned to sell 2-3 percent of its stake in Life Insurance Corporation of India (LIC) in the financial year 2025-26.
According to the news published in Live Mint, this decision will depend entirely on the market situation. The move is part of a strategy to meet the regulatory requirement of at least 10 percent public shareholding in LIC by 2027.
According to the report, the government of India plans to sell its shares in LIC in small portions instead of selling them all at once. So that it can get a better price.
The reason why the government of India wants to increase the share price of LIC is the company’s market size and capitalization is very large. If the market does not perform well, the government may postpone the share sale.
Currently, the Government of India owns 96.5 percent of the shares in LIC. When LIC went public in May 2022, the government raised about Rs 21,000 crore by selling its 3.5 percent stake.
According to the report, if the government sells 2-3 percent shares, it can raise about Rs 9,500 crore to 14,500 crore, based on LIC’s current market capitalization of Rs 4.8 lakh crore.
The Securities and Exchange Board of India (SEBI) had earlier set a deadline for LIC to complete 10 percent public shareholding by May 2024. However, it has now been extended until May 16, 2027.
