LIC Government Stake Sale 2025 update; IPO | Life Insurance Corporation | Government preparing to sell stake in LIC: 6.50% shares can be less, 3.5% stake was sold through IPO in 2022.

The government has approved the offer-for-cell (offs) in LIC, which will be brought to the market soon. (File photo)

The government is preparing to sell its stake in Life Insurance Corporation (LIC), the country’s largest insurance company. According to media reports, the government has approved the offer-for-cell (OFS) in LIC, which will be brought to the market soon. According to reports, the government may sell LIC’s 6.5% stake.

The offer is for sale (offs). That is, the existing shareholders of the company (such as promoters, investors or other big shareholders) will introduce the public to sell the shares of the company with them. This means that the company is not issuing new shares to raise money, but already existing shares are being sold.

LIC’s 96.5% share in the market The government has a 96.5% stake in LIC, and was sold 3.5% in 2022. Now the government is planning to sell 2-3% more, from which around 9,500 to 14,500 crore can be raised. This step is part of the plan to raise money by selling shares of government companies in 2025-26.

LIC’s IPO came in May 2022 Earlier, the government raised Rs 20,557 crore by selling its 3.5% stake in LIC through IPO. Till the government had raised this amount by selling 22.14 crore shares of the company. LIC shares have seen a 12% decline in the last one year.

LIC made of merger of 245 companies in 1956 The Life Insurance Corporation Act passed in Parliament on 19 June 1956. Till then there were 154 Life Insurance Companies, 16 foreign companies and 75 Provident Fund Companies in India. On 1 September 1956, the government nationalized all 245 companies and formed a new company. The company was named LIC i.e. Life Insurance Corporation of India. The government then issued Rs 5 crore for this company.

There are more news …