Now Reading: LIC expects no further government stake sale for 18 to 24 months
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LIC expects no further government stake sale for 18 to 24 months
LIC expects no further government stake sale for 18 to 24 months
The government is unlikely to sell more shares in Life Insurance Corporation of India for the next 18 to 24 months, LIC managing director and chief executive R Doraiswamy said, according to…
The Story in Brief
The government is unlikely to sell more shares in Life Insurance Corporation of India for the next 18 to 24 months, LIC managing director and chief executive R Doraiswamy said, according to The Economic Times. The government has until 2032 to meet Sebi’s 25% minimum public shareholding rule for LIC.
The government recently sold a 6.5% stake through an offer for sale, taking LIC’s public float to 10%, ahead of its May 2027 target. 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%.
The Indian Opinion
The claim that LIC’s share-price prospects now depend mainly on the government staying out is too simple. A pause may reduce near-term supply pressure, but the insurer still has to prove that stronger new-business growth can translate into durable returns. Conversely, fears of an imminent sale ignore the 2032 compliance window cited by LIC. Investors should watch whether the 22.90% VNB margin holds in coming quarters, not just the timing of the next OFS.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
