The government is working on further stake sale in Life Insurance Corporation (LIC) and the disinvestment department would work out finer details of the transaction, sources said.
The government currently holds 96.5% stake in LIC. It had sold 3.5% through an initial public offering (IPO) in May 2022 at a price band of ₹902-949 a share. The share sale fetched the government around ₹21,000 crore.
Sources said the government has given its approval for further share sale in LIC through the OFS route and the discussions are still in the nascent stage.
"It is up to the disinvestment department to look at the market condition and conclude the stake sale," a source said The government needs to offload another 6.5% stake in the public sector life insurer to meet the mandated 10% public shareholding requirement by May 16, 2027.
The quantum of stake sale, price and timing would be decided in due course, the source added.
LIC's current market capitalisation stands at ₹5.85 lakh crore.
Shares of LIC were trading at ₹924.40 apiece, down 2.27% over the previous close on the BSE.
