Govt plans additional LIC stake sale through OFS; talks in early stage

At present, the government owns 96.5% of LIC. In May 2022, it sold a 3.5% stake through an IPO, priced between ₹902 and ₹949 per share

The government is preparing to sell a further minority stake in Life Insurance Corporation (LIC), with the Department of Investment and Public Asset Management (Dipam) expected to finalise the transaction details, according to sources.

 

At present, the government owns 96.5 per cent of LIC. In May 2022, it sold a 3.5 per cent stake through an initial public offering (IPO), priced between ₹902 and ₹949 per share. The IPO raised around ₹21,000 crore.

 

Sources confirmed that the government has approved an additional stake sale in LIC via the offer-for-sale (OFS) route, although discussions are still at an early stage.

 

'It is up to the disinvestment department to look at the market condition and conclude the stake sale,' a source said.

 

To meet regulatory norms, the government must reduce its holding by another 6.5 per cent to ensure at least 10 per cent of LIC’s shares are publicly held by 16 May 2027.

 

The size, pricing and timing of the next sale will be decided later, the source added. LIC's current market capitalisation stands at ₹5.85 lakh crore.

 

As of the latest trade, LIC shares were down 2.27 per cent, priced at ₹924.40 on the BSE.  LIC makes a leap in June 

Life Insurance Corporation (LIC) has reported a 14.60 per cent year-on-year (YoY) increase in individual premium in June 2025, higher than 12.12 per cent growth in premium income of private life insurers, Life Insurance Council data showed on Thursday.

 

In June 2025, LIC collected ₹5,313 crore in individual premium, compared to 25 private sector companies, which together accounted for ₹8,408 crore.

During the month of June 2025, total policies issued by LIC stood at 1.2 million from 1.4 million in the same period last year. In the individual policies category, LIC issued 1.2 million polices for June 2025 from 1,4 million policies in 2024, Group policies stood at 1,290 in the last month from 2,827 for June 2024.

In group premium income, LIC earned₹ 22,087 crore, a 7 per cent decline over June last year. The private sector reported a degrowth of 19 per cent in group premium income at ₹5,315 crore.

The total premium income of LIC during the month declined 3.43 per cent to ₹27,395 crore. Private sector players reported 2.45 per cent decline at ₹13,722 crore in total premium income.