Top News

LIC's FPO may come in the next financial year.

Preparations are being made to bring LIC into the market once again. So that the government treasury can be filled. The government is considering further reducing its stake in insurance giant LIC through FPO in the next financial year. At present, the government holds 96.5 percent stake in Life Insurance Corporation of India (LIC). The government had sold 3.5 percent stake in the company through an initial public offering (IPO) in May 2022 at a price range of Rs 902-949 per share. The government received about Rs 21,000 crore from this share sale.

The government gave this information

Financial Services Secretary M Nagaraju said on Monday that the public issue of LIC will have to be brought gradually. We have asked DIPAM (Department of Investment and Public Asset Management) to look at the possibility of reducing the government's stake in LIC. He said that if all the approvals are obtained and the market condition remains favourable, then LIC's FPO can come in the next financial year. According to Securities and Exchange Board of India (SEBI) rules, the government will have to sell another 6.5 percent of its stake to meet the requirement of 10 percent public shareholding in this public sector insurance company by May 2027. The quantum, price and timing of stake sale will be decided in due course.

How has been the performance of LIC?

The country's largest insurance company, LIC, has a market capitalization of Rs 5.08 lakh crore, and its shares closed at around Rs 804 on the BSE on Monday. On the financial front, the government-owned insurance company has reported 32 per cent year-on-year growth in net profit to Rs 10,053 crore in the three months ended September 2025 from Rs 7,621 crore in the same period last fiscal. The main reason for increase in profit was less payment of commission. Total income increased to Rs 2,39,614 crore in the three months ending September 2025, compared to Rs 2,29,620 crore in the same period last year.