India Set to Launch LIC Share Sale, Targeting ₹10,000 Crore

Upcoming LIC Share Sale

India is preparing to initiate the formal marketing process for a significant share sale in the Life Insurance Corporation of India (LIC) next month. This move aims to generate approximately ₹10,000 crore (around $1 billion) for the nation's largest public sector insurer. The government intends to divest about 2% of its stake in the state-owned insurer, targeting institutional investors in late June or early July, as reported by a financial news outlet.

Following this announcement, LIC's shares experienced a decline of up to 4%. The Department of Investment and Public Asset Management, part of India's Finance Ministry, is collaborating with several financial institutions, including Goldman Sachs Group Inc., Motilal Oswal Investment Advisors Ltd., BNP Paribas SA, and IIFL Capital Services Ltd., to oversee the transaction, according to sources familiar with the situation.

In May 2022, India executed a sale of a 3.5% stake in LIC, marking the country's largest initial public offering, which raised around ₹210 billion. As of March 31, the government retained 96.5% ownership of LIC shares. The company has been allotted a decade from its 2022 listing to fulfill the Securities and Exchange Board of India’s (SEBI) mandate for a minimum 25% public shareholding, with a deadline set for May 2032.