India to raise up to $3.3 billion by selling LIC stake at 10% discount
The Indian government is selling a 6.5% stake in the state-owned Life Insurance Corporation (LIC) at a 10% discount to meet regulatory public shareholding requirements. The sale aims to raise up to $3.3 billion to support government disinvestment goals.
Why it matters
This significant divestment impacts India's financial markets and reflects the government's strategy to reduce its ownership in state-run entities.
The Indian government will sell up to a 6.5% stake in state-owned Life Insurance Corporation of India at a 10% discount to its Monday closing price, as it moves to comply with regulatory requirements.
The stake sale will fetch the government up to 314 billion rupees ($3.3 billion) through the offer, which consists of a base size of a 2.5% stake and an option to sell an additional 4% in the country's largest insurance company, LIC said in a stock exchange filing on Monday.
The offer for sale, priced at 382 rupees per share, will open on Tuesday and end on Wednesday.
The government of India owns a 96.5% stake in LIC, which it needs to reduce to 75% by 2032 to meet the minimum public shareholding requirements.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in