Life Insurance Corporation of India (LIC) is one of India’s most trusted and largest insurance companies. Established in 1956, it has played a major role in providing life insurance coverage across the country.
The Government of India holds nearly 6.1 billion shares out of LIC’s total 6.324 billion shares. This amounts to 96.5% of all fully paid-up equity shares of LIC. This massive stake makes the government the main owner or promoter of the company.
The government of India holds these shares through the President of India, represented by the Ministry of Finance. This huge stake gives the government significant control over LIC’s management, strategy, and policies.
Public investors hold the remaining 3.5% of LIC's shares. These include:
Although public shareholding is small compared to the government’s stake, it still adds a level of market participation and investor interest in the company.
According to recent news reports, the government is considering selling a small portion of its stake in LIC. As per the Securities Contract (Regulation) Rules, 1957, all listed companies in India are required to maintain at least 25% public shareholding. However, LIC has currently received a special exemption. Accelerating this stake sale could improve LIC’s corporate governance image and align it better with stock exchange norms, helping build investor confidence.
As per news reports, the government is expected to phase out its stake gradually. Public shareholding in LIC is expected to reach at least 10% by May 16, 2027. However, for this, the government will have to sell an additional 6.5% stake in LIC before that deadline.
Read more: LIC Raises Stake in Rail Vikas Nigam Ltd (RVNL): Know Why.
The Government of India currently holds a 96.5% stake in LIC, maintaining firm control over the company. While public ownership remains limited at 3.5%, regulatory requirements mandate a gradual increase in public shareholding. With a target of 10% public ownership by 2027 and 25% by 2032, LIC is expected to see more public participation in the coming years.
This shift aims to enhance transparency, market discipline, and long-term investor trust, all while retaining LIC’s strong public sector foundation. As the government continues to offload small portions of its stake, retail investors can consider owning a part of LIC through their demat account, depending on their investment goals and risk appetite.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jul 23, 2025, 3:20 PM IST
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