The central government may sell a 2.5 % stake – 3 % in LIC in the first slide of getting rid of investments: Report

The center is preparing to launch the road performances during the next two weeks to promote its planned fairness at the Life Insurance Corporation (LIC), according to the CNBC-TV18 report on August 13, citing sources. In the first tranche, the center considers selling between 2.5 % and 3 % of its share in the insurance giant. Motilal OSWAL and IDBI Capital are expected to be bankers for the next offer (OFS).

The exact amount of shares will be probably completed and the pricing of the Offs will be completed after the completion of these promotional offers for the investor. As of 1:32 pm on August 13, LIC shares were trading at 891.55 rupees each, a decrease of 2.7 % for today. CNBC-TV18 estimates that the government can collect 14,000 rupees 17,000 rupees of this first segment of disposal.

Currently, the government has a 96.5 % stake in LIC. The SEBI market organizer directed the insurance company to increase its general shareholders from 3.5 % to 10 % by May 16, 2027. The goal of the broader non -investment is 26 degrees of 47,000 rupees, and the sale of LIC’s share is expected to be a major shareholder in this goal.

Q1 LIC performance

Earlier in August, LIC recorded a 5 % increase on an annual basis in a net profit for the first quarter, driven by growth in policy renewal installments. The profit increased after the tax to 10,987 rupees in April – June 2025, an increase of 10461 rupees in the same period last year.

Distinguished pure income fell by approximately 5 % to 1.19 rupees, with support from a 6 % increase in renovation installments. The value of the new business (VNB)-a major scale indicating the expected profits of new policies-by 20.75 % on an annual basis. The VNB margin also improved to 15.4 %, compared to 13.9 % in the previous year.

Annual installment sales (APE) increased by 9.45 %, supported by 16 % jump in APE. The percentage of LIC is increased, reflecting its ability to meet long -term financial obligations, to 2.17 during the quarter of 1.99 in the previous period and 2.11 in the previous quarter.

LIC Battle in the FRA bond market

In another important development, LIC entered into the front price agreements (FRA) bonds, with the implementation of deals with more than 10 main lenders, including local and foreign banks. Market experts believe that LIC’s participation can stimulate the demand for long-term government securities. However, they also warn that increased activity may narrow the front spread, which may affect the margins of profit for other participants.

The insurance company has also indicated plans to start trading in bond attacking soon. Bond Fraas enables insurance companies to lock future interest rates on government bonds, which provides hedging against low prices that may put pressure on their long -term obligations, especially for unseen insurance policies.

Through its strong separation performance, expansion in the new market sectors, and the sale of the next stocks, LIC is still at the government’s financial and government strategy strategy center for the current fiscal year.