The Indian government is preparing to launch a share sale in Life Insurance Corporation of India (LIC) next month, aiming to raise up to 100 billion rupees ($1 billion), according to livemint.com. The planned offer for sale (OFS) will involve selling about a 2% stake in the state-run insurer.
The government is expected to begin formal marketing of the LIC stake sale in late June or early July, targeting institutional investors. The sale process will follow standard procedures for an OFS, allowing existing shareholders to sell shares on the stock exchanges. The exact timing and final stake size will be confirmed closer to the launch date, sources told livemint.com.
This share sale is part of the government’s ongoing efforts to divest stakes in public sector enterprises to raise funds and improve market participation. LIC’s listing and subsequent stake sales have been closely watched by investors, given its dominant position in India’s insurance sector. The planned 2% stake sale could raise significant capital while providing liquidity to the market, reflecting a broader trend of government disinvestment in large state-owned firms.
Looking ahead, the government will finalize the offer details and begin marketing to institutional buyers next month. Market participants will watch for subscription levels and pricing, which will indicate investor appetite for LIC shares. The sale is expected to conclude in early July, marking another step in the government’s divestment calendar for the year, livemint.com reported.