As per Bloomberg news report, India is gearing up to divest a 3.5% stake in Life Insurance Corporation (LIC) valued at approximately $1 billion by next month.
This move follows the government's previous sale of a similar stake in LIC through an initial public offering (IPO) last year.
The Indian government is considering selling a 3.5% stake in LIC, which is expected to raise around $1 billion.
The sale is anticipated to be conducted through block deals on the stock exchanges, with discussions ongoing with advisers and investors.
Currently, the government holds a 96.5% stake in LIC. The planned divestment aligns with the government's strategy to reduce its holdings in public sector enterprises.
In the previous year, the government successfully sold a 3.5% stake in LIC for approximately $2.7 billion through an IPO.
This transaction marked the largest IPO in India's history, drawing significant attention from investors.
Read More: LIC Offloads Stakes in Top Indian Companies in Q4FY26; HDFC Bank and SBI Among Sellers!
The upcoming stake sale is likely to be executed through block deals on the stock exchanges. This method allows for large transactions to be completed efficiently, minimising market disruption.
The sale is part of the government's broader divestment strategy aimed at raising funds and reducing its stake in public sector companies.
By divesting its holdings, the government seeks to enhance the efficiency and competitiveness of these enterprises.
As of May 27, 2026, at 12:28 PM, LIC share price on NSE was trading at ₹828.85 down by 3.05% from the previous closing price.
India's decision to sell a 3.5% stake in LIC for $1 billion reflects its ongoing efforts to divest from public sector enterprises. The planned block deal approach ensures a smooth transaction process, aligning with the government's strategic objectives.
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Published on: May 27, 2026, 12:53 PM IST
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