Kathmandu. Life Insurance Corporation of India (LIC) is all set to sell its 1% stake in the company. The central government of India is likely to start the formal process for the sale of shares of LIC next month. The sale of shares can raise up to Rs 100 billion.
According to news agency Bloomberg, India’s central government may sell about 2 percent more of its stake in this state-owned life insurance company. The share sale could take place at the end of June or early July this year. The shares will be sold to institutional investors.
The Department of Investment and Public Asset Management (PASMA) of the Ministry of Finance has started the process of selling its stake in LIC. Goldman Sachs Group, Motilal Oswal Investment Advisors, BNP Paribas and IIFL Capital Services were involved in the transaction.
The Government of India sold a 3.5% stake in LIC for the first time in May 2022. At that time, it was the largest IPO in the country. The Government of India raised about Rs 210 billion through this.
As of March 31, the government held 96.5 per cent stake in LIC, according to stock exchange data. The insurance company has been allowed to meet the minimum 25 per cent public shareholding requirement of the Securities and Exchange Board of India (SEBI) for 10 years from the listing date of 2022. The company has to comply with this period till 2032.
