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2mo ago

India Reportedly Preparing to Sell Roughly 2% Stake in LIC as Shares Slide

A planned institutional placement would raise about Rs 10,000 crore to boost the government’s public shareholding in the insurer.

HDFC Securities upgraded LIC shares to a 'Buy' rating while maintaining its target price at Rs 1,110.
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Overview

  • Multiple reports on Wednesday, May 27, 2026 said the government plans to begin formal marketing in June for an institutional placement of roughly 2% of Life Insurance Corporation of India.
  • The sale is reported to target about Rs 10,000 crore but the timing and exact size remain unfinalized and could change as discussions continue.
  • LIC shares fell about 4% in trading on May 27 after the reports, reflecting immediate investor sensitivity to a government stake sale.
  • The Department of Investment and Public Asset Management has engaged major banks named in reports, including Goldman Sachs, Motilal Oswal, BNP Paribas and IIFL, to advise and manage the transaction.
  • The move sits against SEBI’s rule that listed firms must reach 25% public shareholding and follows the 2022 IPO that left the government with about 96.5% of LIC, so the sale may form part of a broader disinvestment push and affect market liquidity and investor demand.