Government is likely to initiate roadshows in two weeks for divestment of its stake in Life Insurance Corporation of India, reported CNBC-TV18 on August 13 citing sources.
Government could look at selling 2.5%-3% In LIC in the first tranche of divestment, the channel reported, adding that Motilal Oswal and IDBI Capital have likely been appointed as bankers for LIC OFS.
Final quantum of the first tranche of LIC’s OFS and pricing could be decided post roadshows, reported CNBC-TV18.
At 1:32 pm on August 13, LIC shares were trading 2.7% lower at Rs 891.55 apiece.
Government may be able to raise Rs 14,000 crore-Rs 17,000 crore through first tranche of divestment in LIC, the channel added.
Government holds 96.5% stake in LIC.
Market regulator SEBI gave LIC time till May 16, 2027 to raise public shareholding To 10% From 3.5%.
Earlier this month, LIC reported a 5% rise in first-quarter profit, helped by higher premiums from renewed policies, while its margins expanded due to an improvement in its product mix.
Profit after tax for the country's biggest insurer rose to Rs 10,987 crore for the quarter ended June 30 from Rs 10,461 crore a year earlier.
The insurer's net premium income rose nearly 5% to Rs 1.19 lakh crore, helped by a 6% rise in its renewal premium collection.
The value of new business (VNB), which measures expected profit from new premiums, rose 20.75% year-over-year in the reporting quarter.
The VNB margin rose to 15.4% from 13.9% a year ago.
Its annualised premium equivalent (APE) sales, which is the annualised total value of all single- and recurring-premium policies, rose 9.45% aided by a 16% rise in group APE.
Solvency ratio, the measure of an insurer's ability to meet its long-term financial obligations, rose to 2.17 during the quarter from 1.99 a year earlier and 2.11 in the prior quarter.
Centre has set Rs 47,000 crore disinvestment target for FY26.
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