London Daily

Focus on the big picture.
Friday, Sep 12, 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
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Trinidad Leader Applauds U.S. Naval Strike and Advocates Forceful Action Against Traffickers
Kim Jong Un Oversees Final Test of New High-Thrust Solid-Fuel Rocket Engine
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Supreme Court temporarily allows Trump to pause billions in foreign aid
Charlie Sheen says his father, Martin Sheen, turned him in to the police: 'The greatest betrayal possible'
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
Pig Heads Left Outside Multiple Paris Mosques in Outrage-Inducing Acts
Nvidia’s ‘Wow’ Factor Is Fading. The AI chip giant used to beat Wall Street expectations for earnings by a substantial margin. That trajectory is coming down to earth.
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
On the Anniversary of Queen Elizabeth’s Death: Prince Harry Returns to Britain
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Murdoch Family Finalises $3.3 Billion Succession Pact, Ensuring Eldest Son’s Leadership
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Court Staff Cover Up Banksy Image of Judge Beating a Protester
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
Elon Musk Poised to Become First Trillionaire Under Ambitious Tesla Pay Plan
France, at an Impasse, Heads Toward Another Government Collapse
Burning the Minister’s House Helped Protesters to Win Justice: Prabowo Fires Finance Minister in Wake of Indonesia Protests
Brazil Braces for Fallout from Bolsonaro Trial by corrupted judge
The Country That Got Too Rich? Public Spending Dominates Norway Election
Nearly 40 Years Later: Nike Changes the Legendary Slogan Just Do It
Generations Born After 1939 Unlikely to Reach Age One Hundred, New Study Finds
End to a four-year manhunt in New Zealand: the father who abducted his children to the forests was killed, the three siblings were found
Germany Suspends Debt Rules, Funnels €500 Billion Toward Military and Proxy War Strategy
EU Prepares for War
BMW Eyes Growth in China with New All‑Electric Neue Klasse Lineup
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
US Justice Department Launches Criminal Mortgage-Fraud Probe into Federal Reserve Governor Lisa Cook
Escalating Drug Trafficking and Violence in Latin America: A Growing Crisis
US and Taiwanese Defence Officials Held Secret Talks in Alaska
Report: Secret SEAL Team 6 Mission in North Korea Ordered by Trump in 2019 Ended in Failure
×