LIC shares decline over 2% amid reports of government planning to sell minority stake

The government currently holds a 96.5% stake in LIC. It had sold 3.5% through an initial public offering (IPO) in May 2022 at a price band of ₹902-949 a share. The share sale fetched the government around ₹21,000 crore.

"It is up to the disinvestment department to look at the market condition and conclude the stake sale," a source said.

The government needs to offload another 6.5% stake in the public sector life insurer to meet the mandated 10% public shareholding requirement by May 16, 2027.

The quantum of stake sale, price, and timing would be decided in due course, the source added.

Shares of the LIC settled at ₹926.90 apiece on the National Stock Exchange, declining 2.02% on Thursday. The company's current market capitalisation stands at ₹5.86 lakh crore.

Meanwhile, the insurance firm reported a 14.6% year-on-year (YoY) increase in individual premium in June 2025, higher than the 12.12% growth in premium income of private life insurers.

In June 2025, LIC collected ₹5,313 crore in individual premium, compared to 25 private sector companies, which together accounted for ₹8,408 crore.

During the month of June 2025, total policies issued by LIC stood at 12.49 lakh, from 14.65 lakh in the same period last year. In the individual policies category, LIC issued 12.48 lakh policies for June 2025 from 14.62 lakh policies in 2024. Group policies stood at 1,290 in the last month, from 2,827 for June 2024.

In group premium income, LIC earned ₹22,087 crore, a 7% decline over June last year. The private sector reported a degrowth of 19% in group premium income at ₹5,315 crore.

The total premium income of LIC during the month declined 3.43% to ₹27,395 crore. Private sector players reported a 2.45% decline at ₹13,722 crore in total premium income.

For Q4 FY25, LIC had reported a 38.15% year-on-year (YoY) surge in its profit after tax (PAT) of ₹19,012.79 crore. In the corresponding period a year ago, it had clocked a net profit of ₹13,762.64 crore.