India is expected to commence formal marketing next month for a proposed share sale in the Life Insurance Corporation of India (LIC), potentially raising up to ₹10,000 crore, according to sources familiar with the matter.
The government aims to divest approximately 2% of its stake in the state-owned insurer in late June or early July, targeting institutional investors, as reported by insiders who requested anonymity due to the sensitive nature of the information.
The Department of Investment and Public Asset Management, part of India’s Finance Ministry, is collaborating with Goldman Sachs Group Inc., Motilal Oswal Investment Advisors Ltd., BNP Paribas SA, and IIFL Capital Services Ltd. to facilitate the transaction, according to the same sources. Discussions are ongoing, and particulars regarding the deal’s timing and scale may still be subject to change. Representatives for the government, LIC, and the financial institutions did not respond immediately to inquiries for comment.
This offering is expected to represent one of the few notable equity transactions in India next month, as the markets navigate the economic ramifications of the ongoing conflict in Iran. Heightening tensions have led to increased crude oil prices, raising concerns over India’s import expenditures and prompting Prime Minister Narendra Modi to encourage citizens to reduce fuel usage and limit overseas travel.
In May 2022, India sold a 3.5% stake in LIC, marking the country’s largest initial public offering at that time, garnering around ₹21,000 crore. The shares were initially priced at ₹949 each.
As of March 31, the government owned 96.5% of LIC, according to exchange data. The insurer has been granted a 10-year period from its 2022 listing to fulfill the Securities and Exchange Board of India’s public shareholding requirement of at least 25%, granting it until May 2032 to achieve this goal.
