London Daily

Focus on the big picture.
Wednesday, Dec 10, 2025

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 Officials Push Back at Trump Saying European Leaders ‘Talk Too Much’ About Ukraine
UK Warns of Escalating Cyber Assault Linked to Putin’s State-Backed Operations
UK Consumer Spending Falters in November as Households Hold Back Ahead of Budget
UK Orders Fresh Review of Prince Harry’s Security Status After Formal Request
U.S. Authorises Nvidia to Sell H200 AI Chips to China Under Security Controls
Trump in Direct Assault: European Leaders Are Weak, Immigration a Disaster. Russia Is Strong and Big — and Will Win
"App recommendation" or disguised advertisement? ChatGPT Premium users are furious
"The Great Filtering": Australia Blocks Hundreds of Thousands of Minors From Social Networks
Mark Zuckerberg Pulls Back From Metaverse After $70 Billion Loss as Meta Shifts Priorities to AI
Nvidia CEO Says U.S. Data-Center Builds Take Years while China ‘Builds a Hospital in a Weekend’
Indian Airports in Turmoil as IndiGo Cancels Over a Thousand Flights, Stranding Thousands
Hollywood Industry on Edge as Netflix Secures Near-$60 Bln Loan for Warner Bros Takeover
Drugs and Assassinations: The Connection Between the Italian Mafia and Football Ultras
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
The Disregard for a Europe ‘in Danger of Erasure,’ the Shift Toward Russia: Trump’s Strategic Policy Document
Two and a Half Weeks After the Major Outage: A Cloudflare Malfunction Brings Down Multiple Sites
UK data-regulator demands urgent clarity on racial bias in police facial-recognition systems
Labour Uses Biscuits to Explain UK Debt — MPs Lean Into Social Media to Reach New Audiences
German President Lays Wreath at Coventry as UK-Germany Reaffirm Unity Against Russia’s Threat
UK Inquiry Finds Putin ‘Morally Responsible’ for 2018 Novichok Death — London Imposes Broad Sanctions on GRU
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
UK Postpones Decision Yet Again on China’s Proposed Mega-Embassy in London
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
Reports of Widespread Drone Deployment Raise Privacy and Security Questions in the UK
UK Signals Security Concerns Over China While Pursuing Stronger Trade Links
Google warns of AI “irrationality” just as Gemini 3 launch rattles markets
Top Consultancies Freeze Starting Salaries as AI Threatens ‘Pyramid’ Model
Macron Says Washington Pressuring EU to Delay Enforcement of Digital-Regulation Probes Against Meta, TikTok and X
UK’s DragonFire Laser Downs High-Speed Drones as £316m Deal Speeds Naval Deployment
UK Chancellor Rejects Claims She Misled Public on Fiscal Outlook Ahead of Budget
Starmer Defends Autumn Budget as Finance Chief Faces Accusations of Misleading Public Finances
EU Firms Struggle with 3,000-Hour Paperwork Load — While Automakers Fear De Facto 2030 Petrol Car Ban
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
UK Budget’s New EV Mileage Tax Undercuts Case for Plug-In Hybrids
UK Government Launches National Inquiry into ‘Grooming Gangs’ After US Warning and Rising Public Outcry
Taylor Swift Extends U.K. Chart Reign as ‘The Fate of Ophelia’ Hits Six Weeks at No. 1
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
European Powers Urge Israel to Halt West Bank Settler Violence Amid Surge in Attacks
"I Would Have Given Her a Kidney": She Lent Bezos’s Ex-Wife $1,000 — and Received Millions in Return
European States Approve First-ever Military-Grade Surveillance Network via ESA
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
×