The central government is considering selling its 2-3 per cent stake in the Life Insurance Corporation of India (LIC) in FY 2025-26. So that by May 2027, 10 percent public shareholding requirement can be met. Mint’s report quoted a source as saying that it aims to increase the price of LIC share. Here, on Wednesday, LIC shares fell more than 2 per cent to Rs 1,000. It has come down to 737.95.
What is the whole matter?
According to a report, the central government is considering selling 2-3 percent stake in Life Insurance Corporation (LIC) based on market status during the financial year 2025-26. This step is in line with the plan to meet the regulatory requirement of 10 percent public shareholding by 2027. Instead of offering a time, sales are likely to be divided into two stages for better value. If market conditions become unfavorable, the government may demand expansion. In the relevant developments, the Department of Investment and Public Promotion Management (DIPAM) under the Finance Ministry has recently invited dialects from merchant banks and legal advisors to monitor the sale of minority stake in many public sector banks (PSBs) and LIC in the next three years.
The government currently holds 96.5% stake in LIC
LIC’s IPO will come in May 2022. The company raised around Rs 21,000 crore by selling 3.5% stake. Its value band was fixed at Rs 949. But the company’s shares have not performed well after the listing and are currently trading below IPO price.
