The Indian government is reportedly planning to sell up to 25% of its stake in the Life Insurance Corporation of India (LIC)in one or more tranches, a report by Moneycontrol said.

The move, which is part of the upcoming initial public offering (IPO) of the state-run insurer, would scale up the size of the IPO much bigger than expected.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Additionally, the government is planning to offer bonus and a 10% discount on the offer price to retail investors.

The publication cited a government source as saying: “The Department of Financial Services under the finance ministry has floated a draft Cabinet note for stake sale in LIC to the ministries concerned, SEBI, IRDA and NITI.”

“Dilution of government shareholding from 100% to 75% in LIC in one or more tranches has been proposed,” another person familiar with the matter told the publication.

The move is said to follow the government’s efforts to bridge the widening budget gap, which has been suffering due to the nationwide lockdown instigated by the Covid-19 pandemic.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The IPO is expected to significantly make up the government’s budgeted disinvestment target in the current fiscal.

Previously, it was said that the state is looking to sell only 10% in LIC.

The IPO was first announced by Finance Minister Nirmala Sitharaman during the 2020-21 budget.

“Listing of companies on stock exchanges disciplines the company and provides access to financial markets and unlocks its value. It also gives an opportunity for retail investors to participate in the wealth so created,” she had said at the time.