Shares of Life Insurance Corporation of India were in focus after a CNBC-TV18 report said the government has postponed the proposed offer for sale (OFS) in the insurer and is now likely to carry out the stake sale only in the next financial year.
Earlier, government discussions had indicated plans to offload 1–2 percent stake in LIC during the fourth quarter (Q4) of FY26. However, the latest report suggests that the timeline has now been pushed back as market conditions remain challenging.
According to sources cited by CNBC-TV18, the government is reassessing the timing of the OFS due to LIC’s large market capitalisation and subdued investor appetite, which could make execution difficult in the current environment.
Previously, the government had explored selling a larger 2.5–3 percent stake through an OFS. That plan was later scaled down to a 1–2 percent tranche to improve feasibility. A senior government source had told Moneycontrol that a 1–2 percent stake sale could have raised around Rs 13,000–14,000 crore, while a 3 percent sale would have required absorbing nearly Rs 24,000 crore, which was seen as difficult amid muted demand.
Officials have also indicated that the government continues to closely track global volatility, domestic market flows, and institutional absorption capacity before finalising the stake sale plan. With these factors still evolving, the OFS is now expected to be deferred and considered only in the next financial year, rather than in Q4 of FY26 as earlier discussed.
The development keeps LIC in focus, as clarity on the government’s divestment roadmap and market conditions will be key drivers for the stock going forward.
