Government Plans Minority Stake Sale in LIC via Offer for Sale (OFS)
The Indian government has announced its intention to sell a minority stake in Life Insurance Corporation (LIC) through the Offer for Sale (OFS) mechanism. This move is part of the government’s ongoing efforts to divest stakes in public sector enterprises and raise capital.
LIC, being the largest insurer in the country, attracted significant attention from investors following this announcement. The OFS route will allow existing shareholders and retail investors to participate in the sale, potentially widening the shareholder base of LIC.
Market observers note that the sale could influence LIC’s stock performance amidst an already volatile market environment influenced by global cues and sector-specific trends. The government aims to balance its disinvestment goals with market stability concerns.
This minority stake sale is seen as a step towards broadening public ownership in LIC while providing liquidity and improving market participation. Investors are advised to keep an eye on official updates as the OFS date approaches and market conditions evolve.