Life Insurance Corporation is the biggest insurance company in India. It holds more than 63.51 percent of the market share in new business premiums. LIC provides a wide range of insurance products, including participating policies, unit-linked insurance plans, savings plans, term insurance, health insurance, and retirement or pension plans.
With a market capitalization of Rs.5,70,514.79 crores, the shares of Life Insurance Corporation of India Limited were trading at Rs.902, down by 0.31 percent from its previous day closing price of Rs.904.80.
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LIC Disinvestment
Life Insurance Corporation of India launched its Initial Public Offering in May 2022. The price band for the IPO was set between Rs.902 and Rs.949 per equity share. Retail investors and LIC policyholders were offered discounts of Rs.45 and Rs.60 per share respectively.
The Indian government currently owns 96.5 percent of Life Insurance Corporation, with only 2.02 percent held by the public. To comply with the Securities and Exchange Board of India regulations, LIC must increase its public shareholding to at least 10 percent by May 16, 2027.
The government plans to sell 2.5 to 3 percent of its LIC stake through an offer for sale. This move aims to raise between Rs.14,000 crore and Rs.17,000 crore in the first tranche.
The government intends to achieve the 10% public shareholding target by 2027 through multiple smaller stake sales, minimizing market disruption. This disinvestment is part of the government’s broader fiscal strategy to raise Rs.47,000 crore from public sector undertakings disinvestment in the current financial year.
In the opening of Q1FY26, the company’s operating revenue rose to Rs.2,24,671 crore from Rs.2,11,952 crore in Q1FY25. Net profit also grew to Rs.10,955 crore compared to Rs.10,527 crore a year earlier. The return on equity is 45.7 percent, and the return on capital employed is 53 percent. With the continuation, the stock is trading at a P/E of 11.60 with an industry average of 74.20.
Written By Jhanavi Sivakumar
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