London Daily

Focus on the big picture.
Friday, Oct 02, 2026

India Rejects Offer to List IPOs of Its Largest Life Insurer LIC on London Stock Exchange

India Rejects Offer to List IPOs of Its Largest Life Insurer LIC on London Stock Exchange

Last year, India faced a recession after the economy contracted for two successive quarters due to a COVID-induced lockdown. Prime Minister Narendra Modi's government announced in February that it would raise nearly $23 billion for budgetary needs by selling off its stakes in major public sector enterprises.

The Indian government has rejected several offers to float Initial Public Offerings (IPOs) for its public behemoth, the Life Insurance Corporation (LIC), on the London Stock Exchange (LSE), a senior bureaucrat said on Tuesday.

"The LIC is and will continue to be controlled by the Indian government", said Department of Investment and Public Sector Management (DIPAM) Secretary Tuhin Kanta Pandey at a briefing.


He also said the Indian government had received interest from "many major foreign investors" to buy a stake in LIC.

"The Indian stock market is very deep and has enough liquidity", Pandey added.

The federal government currently has a 100-percent stake in the Life Insurance Corporation, which controls nearly two-thirds of the Indian insurance market.

Around 300 million people are holders of an insurance policy guaranteed by the LIC, which also has an employee base of over 100,000.

As per LIC's accounts, its gross income clocked 9.83% growth for the financial year ending in March 2020, when compared to the previous year, making the company one of the few profitable government-owned enterprises in India.

Indian Finance Minister Nirmala Sitharaman announced during the unveiling of the federal budget this year that the country's COVID-battered economy had set a disinvestment target of nearly $23 billion to be met through the sales of stakes in public-owned enterprises, including financial institutions such as the LIC.

While LIC's exact value is not currently known, it is estimated to be over $106 billion.

The government has planned to sell a stake of nearly 10 percent, which is expected to raise nearly $13 billion, more than half of the disinvestment target for the ongoing financial year.

"The government will continue to hold the controlling stake in LIC, which has been identified as one of the four strategic sectors that requires bare minimum government presence", said Pandey.


As per India's new Public Sector Enterprise Policy (PSE) unveiled on 4 February 2021, the government will maintain a "bare minimum presence" in "strategic industries classified as crucial for the purpose of national security — atomic energy, space, defence, transport, telecommunications, power, petroleum, coal as well as other minerals, banking, financial, and insurance services".

The new guidelines mandate the Indian government to sell off its stakes in other publicly-owned industries or "consider them for closure".

"The new PSE policy is a landmark policy and is akin (in scope) to the economic reforms of 1991", said Pandey, referring to the 1991 decision to privatise large chunks of Indian industry.


He said that the government's decision last week to sell off its stake in Air India to the Tata Group as well as the disinvestment proceedings of other government-controlled companies, such as LIC, is acting as a "catalyst" for another round of economic reforms.

Pandey also expressed hope that a Draft Red Herring Prospectus (DRHP) for the LIC would be issued by December and that IPOs would be floated on the Indian stock exchange by March of next year.

A DRHP is filed with India's federal market regulatory agency, the Securities and Exchange Board of India (SEBI), and published before a company intends to issue an IPO.

"The LIC listing will be the biggest ever in Indian history. It will be counted among the biggest financial reforms in recent times", claims Pandey.

Newsletter

Related Articles

0:00
0:00
Close
UK Councils to Receive Sweeping Planning Powers to Ban New Vape and Betting Shops
Chancellor John Healey Faces Tax and Pension Scrutiny Ahead of Autumn Budget
Metropolitan Police Apologise for Accidental Disclosure in High-Profile Investigation
UK Universities Report Record International Enrolment as Housing Pressure Grows
UK Logistics Firms Monitor Rhine Disruption as Low Water Threatens European Supply Chains
UK Food Industry Warns Inflation Could Approach 7%
UK Introduces Vaping Duty and Mandatory Retail Stamps
Scotland Raises Property Taxes and Expands Child Payment in Annual Budget
Greggs Plans Four Factory Closures With 740 Jobs at Risk
OECD Raises UK 2026 Growth Forecast to 1.1%
UK Inflation Rises to 3.1% as Bank of England Faces Rate Debate
Andy Burnham Criticises Brexit and Says Rejoining EU Single Market Remains an Option
UK Imposes New Sanctions on Russian Military Networks and Propagandists
UK Launches Nationwide Early-Release Prison Scheme
Andy Burnham Says Security Services See Signs of Iranian Involvement in RAF Fairford Incident
Manchester City Found Guilty on Premier League Financial Charges After Independent Investigation
Scottish Court to Rule on Bid to Force No-Confidence Vote Against Aberdeen Council Co-Leader
UK Bans Extra Charges for Seating Children Under 12 Beside Accompanying Adults
UK Introduces Vaping Duty and New Licensing Requirements
Greggs to Close Four UK Factories and Cut 740 Jobs
Hundreds of Prisoners Released Early as England and Wales Prisons Reach 98% Capacity
UK Unveils New Russia Sanctions Targeting War Funding and Shadow Fleet
Burnham Says There Are Strong Indications of Iranian Involvement in RAF Fairford Security Breach
Prime Minister Andy Burnham Raises Prospect of Reviewing Britain's Post-Brexit EU Relationship
Markets Price in Bank of England Rate Increases as Inflation Rises to 3.1%
UK Borrowing Costs Climb Toward 5.5% as Global Bond Sell-Off Intensifies
UK-France One-In-One-Out Migration Agreement Expires as London Seeks Alternative Measures
Southwest England Faces Flood Alerts After Heavy Autumn Storms
UK Expands Funding for Rapid Electric Vehicle Charging Infrastructure
Welsh Government Approves Funding to Upgrade South Wales Transport
Northern Ireland Tensions Rise as Orange Order Rejects Drumcree Compromise
NHS Leaders Back Early Design of Proposed National Care Service
More Than One-Third of Regional UK Universities Face Financial Deficits
UK Current Account Deficit Narrows as Cross-Border Financial Flows Remain Strong
Bank of England and FCA Issue New Rules for Stablecoins and Digital Assets
MI5 Warns UK Universities Over Research Links With Chinese Institutions
UK Energy Price Cap Rises 4% as Electricity VAT Is Temporarily Suspended
Equity Calls for UK Personality Rights to Protect Performers From AI Replication
OpenAI Pauses Advanced Model Training Following Safety Concerns
Scottish Government Proposes Replacing 32 Councils With Larger Regional Authorities
Ofgem Raises UK Household Energy Price Cap by 4% From October
UK Counter-Terrorism Police Continue Investigation After Five Arrests Near RAF Fairford
OECD Cuts UK 2027 Growth Forecast to 1%
Labour Says State Pension Triple Lock Remains Protected Through Current Parliament
Andy Burnham Pledges National Care Service With Free Social Care in England
Six Flags Permanently Shuts Landmark X2 Roller Coaster Following Safety Scandals
Metropolitan Police Rule Out Terrorism in Golders Green Stabbing Investigation
Lithium-Ion Battery Identified as Cause of Fatal Merseyside House Fire
UK Department Rejects New Sea Use Framework Due to Stakeholder Fatigue
Major Thames Water Pipe Burst Causes School Closures in London
×