Govt to sell up to 6.5% in LIC at ₹382/share; to add ₹31k crore to disinvestment kitty

Why in news

The Government of India is initiating a significant disinvestment of LIC shares to meet SEBI's minimum public shareholding requirements.

Background

The government plans to sell up to 6.5% stake in LIC at ₹382 per share, aiming to raise ₹31,000 crore. The sale includes a 2.5% equity disinvestment with a 4% green shoe option, reducing the government's stake from 96.5%.

Facts for Prelims

• FactLIC share price for the offer: ₹382 per share
• FactTotal expected proceeds from the sale: ₹31,000 crore
• BodyDIPAM: Department for Promotion of Industry and Internal Trade
• FactCurrent government stake in LIC: 96.5%
• FactGreen shoe option: An additional 4% equity available for sale

For Mains

Q. Discuss the significance of disinvestment in Public Sector Undertakings (PSUs) for India's fiscal health and the challenges of maintaining public oversight.

Dimensions to cover in your answer

• fiscal deficit reduction
• capital infusion for infrastructure
• regulatory compliance (SEBI)
• impact on public service delivery

Keywords: disinvestment · capital markets · fiscal consolidation · public shareholding · green shoe option

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