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The Centre could look to offload 2.5%-3% of its holding in LIC in the first tranche via an offer for sale (OFS), according to CNBC-TV18.
The divestment plan comes shortly after LIC posted a 5% rise in first-quarter profit, aided by higher renewal premiums and an improved product mix.
The government is likely to kick off roadshows within the next fortnight for the planned sale of its stake in Life Insurance Corporation of India (LIC), CNBC-TV18 reported on August 13, citing sources.
According to the report, the Centre could look to offload 2.5%-3% of its holding in the first tranche via an offer for sale (OFS). Motilal Oswal and IDBI Capital are understood to have been appointed as bankers for the transaction.
The final size and pricing of the OFS are expected to be determined after the roadshows. At 1:32 pm on Tuesday, LIC shares were trading 2.7% lower at ₹891.55 on the BSE.
The sale could fetch the government between Rs 14,000 crore and Rs 17,000 crore, the channel said. Currently, the Centre owns 96.5% of LIC. Under SEBI norms, LIC has until May 16, 2027, to raise its public shareholding from the present 3.5% to at least 10%.
The divestment plan comes shortly after LIC posted a 5% rise in first-quarter profit, aided by higher renewal premiums and an improved product mix. Profit after tax rose to Rs 10,987 crore in the April-June quarter, from Rs 10,461 crore a year earlier. Net premium income grew nearly 5% to Rs 1.19 lakh crore, driven by a 6% increase in renewal collections.
LIC’s value of new business (VNB) climbed 20.75% year-on-year, with margins improving to 15.4% from 13.9%. Annualised premium equivalent (APE) sales rose 9.45%, led by a 16% jump in group APE. The solvency ratio improved to 2.17, from 1.99 a year ago and 2.11 in the previous quarter.
For FY26, the government has set a Rs 47,000 crore disinvestment target.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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