India is preparing to sell approximately 2% of Life Insurance Corporation of India (LIC) shares to institutional investors, with formal marketing expected to commence next month. The government aims to raise as much as 100 billion rupees, equivalent to $1 billion, through this transaction, which is anticipated to occur in late June or early July.
The Department of Investment and Public Asset Management (DIPAM) within the Finance Ministry is collaborating with financial advisors including Goldman Sachs Group, Motilal Oswal Investment Advisors, BNP Paribas, and IIFL Capital Services to manage the proposed share sale. However, discussions are ongoing, and the final timing, size, and other details of the sale could change.
This upcoming sale follows a previous divestment in May 2022, when India sold a 3.5% stake in LIC during its initial public offering (IPO), raising around 210 billion rupees ($2.5 billion) at an issue price of 949 rupees per share. As of March 31, the government currently holds a 96.5% stake in LIC.
LIC has a Securities and Exchange Board of India (SEBI) mandate to achieve a minimum public shareholding of 25% within 10 years of its 2022 listing, setting a compliance deadline of May 2032. This means the government will need to further reduce its stake by another 6.5% to meet the 10% public shareholding requirement by May 2027.
