Shares of Life Insurance Corporation of India (LIC) dropped as much as 4% to an intraday low of Rs 810 on the BSE on Wednesday after a report said the government could begin formal marketing next month for a proposed stake sale that may raise up to Rs 10,000 crore ($1 billion).
The government plans to sell a stake of about 2% in the state-run insurer in late June or early July to institutional investors, according to a Bloomberg report.
The Department of Investment and Public Asset Management (DIPAM), under the finance ministry, is working with Goldman Sachs Group, Motilal Oswal Investment Advisors, BNP Paribas SA, and IIFL Capital Services to manage the transaction, the report added.
India had earlier sold a 3.5% stake in LIC in May 2022 through what was then the country’s largest initial public offering, raising nearly Rs 21,000 crore. The shares were priced at Rs 949 apiece during the IPO.
As of March 31, the Indian government held a 96.5% stake in LIC, according to exchange data. The insurer has been given 10 years from its 2022 listing to comply with the Securities and Exchange Board of India’s requirement of maintaining a minimum public shareholding of 25%, giving the company until May 2032 to meet the norm.
LIC bonus issue
LIC has fixed May 29 as the record date to determine the eligibility of shareholders for the state-run insurer's first-ever bonus issue in the ratio of 1:1.
The board had approved the plan in April to issue one fully paid-up equity share of Rs 10 each for every fully paid-up equity share of Rs 10 each held by eligible shareholders as of the record date. The company added that it will issue the bonus shares by capitalising up to Rs 6,325 crore from its reserves and surplus available as of December 31, 2025, which stood at nearly Rs 1.5 lakh crore.
LIC reported a consolidated net profit of Rs 23,467 crore for Q4 of FY26, marking a 23% year-on-year (YoY) rise from the Rs 19,039 crore profit reported in the corresponding quarter of the previous financial year. The firm’s net premium income, meanwhile, rose 12% YoY to Rs 1.65 lakh crore for the quarter under review, compared with Rs 1.48 lakh crore a year earlier.
For the financial year ended March 31, 2026, LIC reported a more than 5% rise in assets under management (AUM) to Rs 57.29 lakh crore, while net profit increased more than 19% year-on-year to Rs 57,419 crore.
With Wednesday’s decline, the stock has snapped a three-day gaining streak on the bourses.
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