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LIC is being prepared for another market offering to replenish government coffers. The government is considering further reducing its stake in the insurance giant LIC through a Follow-on Public Offering (FPO) in the next financial year. Currently, the government holds a 96.5 percent stake in Life Insurance Corporation of India (LIC). In May 2022, the government sold a 3.5 percent stake in the company through an Initial Public Offering (IPO) at a price range of ₹902-949 per share. This share sale fetched the government approximately ₹21,000 crore.

Government Provides This Information
Financial Services Secretary M Nagaraju said on Monday that the LIC public offering would have to be done gradually. "We have asked DIPAM (Department of Investment and Public Asset Management) to explore the possibilities of further reducing the government's stake in LIC," he said. He added that if all approvals are received and market conditions are favorable, the LIC FPO could come in the next financial year. According to Securities and Exchange Board of India (SEBI) regulations, the government will have to sell another 6.5 percent of its stake by May 2027 to meet the mandatory 10 percent public shareholding requirement in this public sector insurance company. The volume, price, and timing of the stake sale will be decided at an appropriate time.

How has LIC performed?
The country's largest insurer, LIC, has a market capitalization of ₹5.08 lakh crore, and its shares closed at approximately ₹804 on the BSE on Monday. On the financial front, the state-owned insurer reported a 32 percent year-on-year increase in net profit for the three months ended September 2025, rising to ₹10,053 crore from ₹7,621 crore in the same period of the previous fiscal year. The increase in profit was mainly due to lower commission payments. Total income increased to ₹2,39,614 crore in the three months ending September 2025, compared to ₹2,29,620 crore in the same period of the previous year.

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