Centre okays LIC stake sale via OFS under FY26 disinvestment plans; stock slips 1%

If confirmed, the OFS would be one of the major transactions for the government’s disinvestment plans for the current financial year

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26 Aug, 2025 12:21

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The Central government has approved an offer-for-sale in Life Insurance Corporation of India (LIC) with the broader goals of achieving government’s disinvestment targets and unlocking value in the insurance behemoth, a top government source said on July 9.

The shares of the company were trading 1.23 percent lower at Rs 934.35 on NSE at 10:09 am on July 10.

The Centre, as of today, holds a 96.5 percent stake in the state-run company, with the rest held by public shareholders, the report said. The firm’s market capitalization stands close to Rs 6 lakh crore and even a sale of 1 percent stake could unlock value of up to Rs 6,000 crore for the government, the source said.

If confirmed, the OFS would be one of the major transactions for the government’s disinvestment plans for the current financial year, according to the source.

Govt plans Rs 45,000 crore capital raise by PSBs in FY26; SBI to lead with Rs 20,000 crore QIP

Earlier, it was reported that the government is planning to sell 6.5 percent stake of the company in several tranches over the next two years as part of its move to comply with SEBI’s minimum public shareholding norms and its effort to launch share sales.

The state-run insurance firm had posted a 38 percent jump in net profit in the fourth quarter of FY25 at Rs 19,013 crore, compared to Rs 13,763 crore in the same quarter of the previous fiscal year.

Its total income for the quarter declined to Rs 241,625 crore, compared to Rs 250,923 crore during the corresponding period last year. The company’s board has recommended a final dividend of Rs 12 per share.