Now Reading: LIC sees no further government stake sale for 18 to 24 months
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LIC sees no further government stake sale for 18 to 24 months
The government is unlikely to sell more LIC shares for 18 to 24 months, Managing Director R Doraiswamy said, according to The Economic Times. LIC has already reached 10% public shareholding ahead…
The Story in Brief
The government is unlikely to sell more LIC shares for 18 to 24 months, Managing Director R Doraiswamy said, according to The Economic Times. LIC has already reached 10% public shareholding ahead of its May 2027 deadline and has until 2032 to meet the 25% norm. The government recently sold a 6.5% stake through an offer for sale, which The Hindu said could bring about Rs 31,000 crore into the disinvestment account. The sale was oversubscribed 3.32 times by institutional investors.
LIC reported a 23% year-on-year rise in consolidated net profit to Rs 13,492 crore for the June quarter. Total premium income rose 6.75% to Rs 1.27 lakh crore, while Value of New Business increased more than 61% and its margin reached 22.90%. The government held a 96.5% stake before the offer for sale, The Hindu reported.
The Indian Opinion
The easy story is that the sale proves either unstoppable investor faith or a government desperate for cash. Both claims overreach. The offer met a compliance deadline early and supports the Centre’s disinvestment receipts, but LIC still faces private-sector competition and had a little over 56% market share in FY26. The useful test is whether its new-business growth and market share hold over the next year, not just the OFS subscription number.
Sources (2): economictimes.indiatimes.com, thehindu.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
