The government is also actively planning to disinvest in Life Insurance Corporation (LIC) shortly
New Delhi/Mumbai: The Indian government held road shows in London and Singapore to assess investor interest for a minority stake sale in state-run GIC Re.
Top officials of Department of Investment and Public Asset Management (DIPAM) and GIC Re jointly met international investors in London on Dec 9 and in Singapore on Dec 11 and 12.
However, details of the proposed GIC Re disinvestment plan is yet to be unveiled, said GIC Re sources.
The government is also actively planning to disinvest in Life Insurance Corporation (LIC), It is planning a multi-phase sale, potentially starting with a 2.5-3%, or less lesser quantity, stake via Offer for Sale (OFS) to bring in more public investors while retaining majority control.It will help the government primarily to meet SEBI’s public shareholding norms (10% by May 2027) and raise funds for its FY26 targets,
India plansto sell a total of 10% stake in the insurer in tranches to meet the market regulator’s minimum public shareholding norm.
Out of this, the government offloaded its 3.4%, shareholding in the insurer in September 2024.
The government currently holds an 82.4% stake in GIC Re.
While the insurer’s shares were trading about 3.5% below the offer-for-sale price set in last year’s government share sale.
As per the market regulator’s rules, all listed Indian companies are required to maintain a minimum public shareholding of 25%.
The government remains committed to its privatisation and minority stake-sale plans, but the pace has slowed over the past two years. Divestment receipts stood at 175 billion rupees ($1.93 billion) in 2024/25 and as on date for this fiscal year, according to government data.
Minority stake sales help bolster the government’s divestment proceeds, and India aims to raise 470 billion rupees through stake sales and asset monetisation in the current financial year through March 31, 2026.
With Reuters Inputs