Govt's LIC Divestment Plan To Unveil In Two Weeks

Business Business

Posted by AI on 2025-08-13 11:37:49 | Last Updated by AI on 2025-08-14 01:50:36

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The Indian government is expected to launch its much-awaited divestment plan for Life Insurance Corporation (LIC) in the next two weeks, where it may offload around 2.5% to 3% of its holding in the first tranche via an offer for sale (OFS). This was reported by CNBC-TV18, citing unnamed sources, raising prospects of reviving the government's divestment agenda amid political opposition and wary investors.

The report has highlighted that the government's urgency in pushing through the divestment plan reflects its quest for revenue to aid economic recovery and meet its fiscal deficit target, amidst easing crude oil prices. It also quoted an industry expert stating that "the government needs money and that's why they are pushing LIC IPO,". This revelation comes after the government failed to entice buyers for its stake in BPCL and Concor.

The move is likely to raise a few eyebrows considering the volatile nature of the global market and the upcoming election in 2024. Industry experts believe that the government could face challenges in garnering interest from foreign investors amidst the global economic downturn. However, it will be interesting to see how the government manages to navigate the challenges and executes its divestment plan smoothly.

This news is a developing story, and we will probably hear more official announcements from the government in the coming weeks.

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