London Daily

Focus on the big picture.
Tuesday, Jul 21, 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
EU Imposes Record €550 Million Digital Services Fine on AliExpress
UK Publishes Updated Consumption-Based Carbon Emissions Data
English Regions Prepare for Expanded Devolution and Infrastructure Powers
Russell Group Backs New Government and Calls for Stronger University-Industry Links
Bank of England Maintains Restrictive Monetary Policy Amid Persistent Inflation
Climate Progress Report Renews Debate Over the UK's Net Zero Strategy
New UK Government Launches Drive to End Rough Sleeping and Expand Social Housing
Prime Minister Andy Burnham Appoints John Healey as Chancellor in Cabinet Reshuffle
OECD Calls for Structural Reforms as UK Economy Faces Slower Growth
International Monetary Fund Expects UK Economic Growth to Slow to One Percent in 2026
Andy Burnham Takes Office as UK Prime Minister and Unveils Decade-Long Reform Agenda
London’s Housing Starts Collapse as Planning and Building Costs Stall Development
Charlie Sheen’s Daughter: "My Dad Didn’t Buy Me a House, My Breasts Bought It"
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Naturally Conceived Identical Quadruplets Born in Rare Brisbane Delivery
Tate Brothers Fight British Extradition Bid After Miami Arrests
Burnham Reshapes Britain’s Government Around Living Costs, Devolution and Security
Jingye Demands Full Compensation After Britain illegally Nationalized British Steel
Just Another Liar or a Robin Hood? Andy Burnham Pledges Cost-of-Living Help in First Speech as UK Prime Minister
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Police Block Cockroach Janta Party’s March to Parliament as Education Protests Intensify
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Turkey Explores S-400 Transfer to UAE in Bid to Rejoin F-35 Program
Josh Kerr Breaks Twenty-Seven-Year World Mile Record at London Diamond League
Thames Water Crisis Deepens as South East Water Outages Hit Thousands in Kent
EU Ban on Destroying Unsold Clothing Forces British Fashion Brands to Change Operations
UK Government Confirms Existing North Sea Oil and Gas Licences Will Be Honoured
UK Covid Inquiry Finds Nearly Ten Billion Pounds Lost in Pandemic Protective Equipment Procurement
Thames Water Moves Toward Possible Temporary Nationalisation Amid Rescue Plan Dispute
Andy Burnham Cancels One Point Eight Billion Pound Digital ID Programme After Taking Office
UK Government Takes British Steel Into Full Public Ownership to Protect Jobs and Supply Chains
Andy Burnham Becomes UK Prime Minister and Pledges Focus on Living Costs and Public Services
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Singapore Considers Lower Taxes for Fund Managers as Hong Kong Intensifies Talent Contest
US Retaliates Against Iran After Two American Troops Killed in Jordan
Bank of Asia BVI Enters Court-Supervised Liquidation After Regulators Find It Insolvent
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Iran Claims It Destroyed Bahrain’s Main Artificial Intelligence Center in Missile and Drone Strike
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Brothers Andrew and Tristan Tate Who Turned "Toxic Masculinity" Into a Brand Arrested in Miami as Britain Seeks Their Extradition
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
×