According to CNBC-TV18, the government is considering falling between 2.5% and 3% of its equity in LIC through an offer for sale (OFS) route.
The proposed sale could collect between RS 14,000 Crore and RS 17,000 Crore, so that the first tranche is marked in what a multi-phases can be used to meet the legal requirements.
The center currently has a 96.5% interest in LIC, with 3.5% sold in its IPO of May 2022. Every fresh disinvestment is closely monitored by investors, because it would increase the public bobber of the insurer and possibly improve the liquidity of the shares.
The decrease in LIC’s share price comes despite the fact that the company will perform a steady operational performance in the quarter of June 2025.
The net premium income rose by 5% on an annual basis to RS 1.19 Lakh Crore, supported by both individual and group business lines. Data from the insurance -regulatory and development authority of India (IRDAI) LIC showed a dominant market share of 63.51% in the first year Premium income (FYPI). In the individual business category it kept it in the group insurance, while in the group insurance state, in the group insurance, one in the group insurance policy, in the groups. 76.54%. In addition to the results, the Interior Brokerage Motual Oswal reduced its target price for LIC to RS 1,080 of RS 1,150, but retained his ‘buy’ rating, stating the deep -rooted market position and growth potential of the insurer.
Investors will now keep a close eye on the timeline of the government’s disinvestment and the appetite of the market for the OFS, which could influence the price action in the short term in the short term.
(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)
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