London Daily

Focus on the big picture.
Monday, Oct 05, 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
BT Accused of Pressuring Vulnerable Customers During Digital Landline Shift
British Carmakers Warn of Growing Pressure From EU-China Tariff Dispute
Green Party of England and Wales Adopts Motion Defining Zionism as Racism
Medical Charity Threatens NHS Legal Action Over Two-Year Autism and ADHD Assessment Waits
British Transport Police Report Record Rise in Violence on Railways
Glasgow Council Workers Face Pay Cuts Under Fire-and-Rehire Plan
British Medical Groups Press Prime Minister Andy Burnham to Cancel £330 Million Palantir NHS Contract
UK Faces Record Bluetongue Outbreak Across Livestock Farms
UK Schools Report Thousands of Child-on-Child Sexual Offences
High Court Overturns Ban Blocking Gaza Families From Reuniting With Relatives in UK
G7 Authorizes Emergency Fuel Release as UK Diesel Prices Hit £2 a Litre
France and Italy Draw 1-1 in Nations League Match
Pope Leo XIV and Prince Albert II of Monaco Meet in Metz
SNCF Expands Low-Cost Ouigo High-Speed Service Between Lyon and Bordeaux
Paris Expands Dedicated Cargo Bike Routes for Urban Deliveries
French Film Industry Pushes for Tighter Streaming Investment Rules
Marseille Court Hands Down Prison Terms in Public Procurement Corruption Case
LVMH and Kering Rely on US Demand as Chinese Luxury Spending Slows
Toulouse Aerospace Sector Launches €80 Million Modernization Fund
Javier Milei Courts French Investment in LNG and Lithium
Mistral AI Launches Sovereign Model for European Public Services
French Competition Authority Fines Retailers €40 Million Over Misleading Promotions
France Records Exceptional Electricity Exports as Nuclear Output Recovers
Dassault Aviation Expands Rafale Assembly Capacity at Mérignac
Sanofi Invests €1 Billion in New Biologics Production Hub Near Lyon
France Protests Germany’s Extension of Border Controls Into 2027
French Public-Sector and Transport Unions Threaten National Strike
France Deploys Riot Police After Violence in Lyon Suburbs
French Anti-Terrorism Prosecutors Investigate Radicalized Flydubai Co-Pilot
France’s Defense Budget Surpasses NATO’s 2% of GDP Target
French Government Faces No-Confidence Threat Over Budget
France and G7 Release 100 Million Barrels From Strategic Oil Reserves
France Convenes Emergency Defense Council Over Threats to Commercial Shipping
France and Germany Coordinate Military Response After Russian Strikes on Kyiv Infrastructure
UK Police Release Six Iranian Nationals on Bail After RAF Fairford Security Alert
UK Business Confidence Falls as Energy Costs and Tax Uncertainty Rise
Cornwall Insight Warns UK Energy Bills Could Rise 16% in January
UK Introduces Zero VAT on Household Electricity Bills
UK 30-Year Gilt Yield Hits 6% as Bond Market Pressures Intensify
UK Introduces Stricter Subcontractor Checks and Expanded Trade Union Access
Green Party Proposes Three-Year Emergency Freeze on Private Rent Increases
UK Treasury Committee Seeks Tax Clarification Over Manchester City Investigation
Royal Marines Deploy to Faroe Islands for Northern European Security Exercise
UK Business Confidence Weakens as High Costs Delay Investment
UK GDP Growth Revised Up to 0.5% in Second Quarter
Bank of England Warns of Financial Stability Risks From Autonomous AI
UK Expands Early Prisoner Release Scheme to Ease Overcrowding
UK Records Worst Bluetongue Outbreak on Record Across Livestock Farms
UK Government Faces Shrinking Fiscal Headroom Ahead of October 28 Budget
UK 30-Year Gilt Yield Reaches 6% as Energy Shock Drives Borrowing Costs Higher
×