The Government of India has announced plans to raise up to ₹314 billion (approximately $3.3 billion) by selling up to a 6.5% stake in Life Insurance Corporation of India (LIC), the country's largest life insurer, as part of its ongoing disinvestment strategy.
According to a regulatory filing, the government will offer LIC shares at ₹382 per share, representing a 10% discount to the stock's closing price on Monday. The Offer for Sale (OFS) opens on Tuesday and concludes on Wednesday.
The transaction includes a base offer of 2.5% of the company's equity, along with an option to sell an additional 4% stake, depending on investor demand.
Following the sale, the Indian government will remain LIC's majority shareholder. It currently owns 96.5% of the insurer and is required to reduce its holding to 75% by 2032 under India's minimum public shareholding regulations.
LIC remains India's largest life insurance company, holding more than 56% market share based on premium income. As of March 2026, the insurer managed assets worth approximately ₹57.29 trillion (around $600 billion), making it one of the country's largest financial institutions.
The latest sale follows LIC's landmark 2022 initial public offering (IPO), during which the government sold a 3.5% stake and raised more than $2.7 billion in what was one of India's largest public listings.
Despite broader weakness in Indian equity markets this year, LIC shares have remained relatively stable. While the benchmark Nifty 50 index has declined more than 5% year-to-date, LIC shares have fallen only marginally over the same period.
The government has accelerated its disinvestment programme in 2026, selling stakes in several state-owned enterprises, including Coal India, NHPC, Cochin Shipyard, and Indian Railways Finance Corporation (IRFC).
According to official data from the Ministry of Finance, these transactions have generated approximately ₹210 billion ($2.2 billion) in proceeds so far this year.
Analysts noted that offering shares at a discount is a common strategy in large government stake sales, helping improve investor participation while ensuring successful execution of sizeable transactions.
The LIC share sale forms part of the government's broader strategy to improve market liquidity, increase public ownership in state-owned companies and meet regulatory listing requirements over the coming years.
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