Government Set to Launch LIC Stake Sale in Coming Weeks via OFS

The government is preparing to kick off the next round of disinvestment in Life Insurance Corporation of India (LIC), with plans to sell a minority stake in the insurer as early as the next two weeks, according to a report by CNBC-TV18.

LIC OFS Details

The news reported stated that the Centre is considering divesting approximately 2.5% to 3% of its equity in LIC via an Offer For Sale (OFS). The move could fetch between ₹14,000 crore and ₹17,000 crore, depending on the final pricing.

This proposed OFS could mark the beginning of a multi-phase disinvestment strategy as the government moves toward meeting regulatory requirements related to public shareholding.

To facilitate the process, Motilal Oswal and IDBI Capital have reportedly been appointed as merchant bankers for the transaction. In the lead-up to the OFS, investor roadshows are expected to be conducted over the next two weeks.

These meetings will help gauge investor appetite and determine appropriate pricing for the stake sale. Final decisions regarding the size and price of the tranche will be made after gathering feedback from potential investors.

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LIC Shareholdings Structure

As of the quarter ending June 2025, the government retained a 96.5% stake in LIC. It had previously offloaded 3.5% of its holdings during the company’s IPO in May 2022.

The Securities and Exchange Board of India (SEBI) has granted LIC a three-year extension to comply with the minimum public shareholding norm of 10%. The revised deadline for meeting this regulatory requirement now stands at May 16, 2027.

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