Life Insurance Corporation of India (LIC), a state-owned insurance giant in India headquartered in Maharashtra, saw its share price decline on July 10, 2025, following news that the central government has approved an Offer for Sale (OFS) to divest part of its stake. The move is part of a broader disinvestment strategy.
Shares of Life Insurance Corporation of India (LIC), the state-owned insurance behemoth based in Mumbai, Maharashtra, fell over 1% in Thursday’s trading session to ₹935.50 apiece, following reports that the Indian government has approved an Offer for Sale (OFS) in the company.
LIC’s share price opened at ₹941 on July 10, slipping from the previous day’s close of ₹946. Despite a 12% gain over the past six months, the stock has declined by nearly 11% over the last year.
According to a report by CNBC-TV18, the Government of India, which currently owns a 96.5% stake in LIC, plans to offload a 1% stake through OFS. This move could yield approximately ₹6,000 crore for the exchequer, given LIC’s market capitalization, which is nearing ₹6 lakh crore.
The OFS initiative is a part of the government’s larger disinvestment strategy for the current fiscal year, aiming to unlock value in public sector undertakings. It also supports the target to meet SEBI’s minimum public shareholding requirement, which mandates that public shareholding in listed companies reach 10% by 2027.
The Centre previously stated its intention to reduce its holding in LIC gradually by up to 6.5% over two years, using phased sales to reach compliance with SEBI norms while avoiding major disruptions in the stock.
The move comes after SEBI (Securities and Exchange Board of India) allowed LIC extended time until 2027 to reach the mandated public float.
Investors are now watching closely as this marks one of the key OFS actions for the financial year — with broader implications for government revenue and public sector reform.
