PSU Insurance Stock, LIC in focus as government plans to sell 2-3% stake in firm
This initiative is part of a broader divestment strategy set to unfold over the next three years.
PSU Insurance Stock, LIC in focus as government plans to sell 2-3% stake in firm
The central government plans to divest 2-3% of its stake in Life Insurance Corporation (LIC) during the 2025-26 fiscal year to achieve 10% public shareholding by 2027. The sale will be conducted in multiple small tranches, depending on market conditions, to optimize valuation.
The Ministry of Finance’s Department of Investment and Public Asset Management (DIPAM) has previously invited bids from merchant bankers and legal advisors to assist in the sale of minority stakes in public sector banks (PSBs) and financial institutions, including LIC. This initiative is part of a broader divestment strategy set to unfold over the next three years.
LIC has received a three-year extension from the Securities and Exchange Board of India (SEBI) to meet the 10% public shareholding requirement by May 16, 2027. SEBI mandates that all listed firms maintain a 25% public float; however, newly listed entities are given three years to comply with this requirement.
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Life Insurance Corporation of India began trading at Rs 760.00 on March 12, 2025, and closed at Rs 761.65, up 0.98% from its previous close of Rs 754.25 and low of Rs 738.90.
The stock declined by 0.99% over the past week, reflecting minor short-term weakness. In the last six months, it dropped 27.1%, indicating sustained selling pressure. Over the past year, it fell 23.5%, highlighting ongoing volatility and underperformance in the market.
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