Life Insurance Corporation of India (LIC) is unlikely to see another round of government stake dilution in the near term, although the Centre remains on track to meet the regulatory thresholds for public shareholding, LIC Chairman and CEO R Doraiswamy said, ANI reported.
The Centre continues to be LIC's majority shareholder following the sale of a portion of its holding through the insurer's 2022 initial public offering (IPO).
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The IPO involved an offer for sale of 3.5% of LIC's equity, making the state-owned insurer a listed entity.
#WATCH | Mumbai, Maharashtra | On govt disinvestment of select LIC stake, LIC CEO R Doraiswamy says, “LIC was a wholly owned government organisation till 2022. In 2022, the decision was taken. The first public offer of LIC was brought out by the government, and 3.5 % of the… pic.twitter.com/Mr99wopCqg
— ANI (@ANI) September 8, 2026
Speaking about the government's disinvestment roadmap, Doraiswamy said LIC had been wholly owned by the government until 2022, when the decision was taken to list the corporation and dilute part of its stake.
"As part of the IPO, we were also given a special dispensation that the public shareholding in LIC should increase to 10% by May 2027, which is five years from the date of IPO, and to 25% by 2032, which is 10 years from IPO," Doraiswamy said, according to ANI.
The government subsequently sold an additional 6.5% stake in LIC in a block deal in the first week of August, raising more than Rs 30,000 crore, he said.
Doraiswamy noted that LIC's shareholder base has also evolved significantly since its listing.
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Institutional participation, which was limited at the time of the IPO, has increased, with Indian mutual funds now holding around 5.5% and foreign portfolio investors owning another 1.2% stake, according to his remarks cited by ANI.
"We do not expect any further offloading in the immediate future, but the government will follow the course as per the mandate given," Doraiswamy said.
The government is required to raise LIC's public shareholding to 10% by May 2027 and 25% by 2032 under the special dispensation granted at the time of its listing.
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