Archive · 2 Aug 2025
Govt Appoints Merchant Bankers for LIC, PSB Stake Sales
The government is hiring experts to help sell small pieces of Life Insurance Corporation (LIC) and some banks.
These experts will work for three years to sell shares when the market is favorable.
The government needs to sell some shares in LIC and a few banks so that more people own them.
This is to meet the rules set by SEBI, the stock market regulator.
LIC has until May 2027 to increase the number of its shares available to the public.
Government appointed merchant bankers for minority stake sales in LIC and other financial institutions.
Appointments are for a three-year term.
The government plans to sell small stakes in LIC and up to five PSBs.
The move aims to help these entities meet SEBI's minimum public shareholding norms.
LIC needs to increase its public float to 10% by May 16, 2027, as per SEBI.
- Who
- Government, LIC, PSBs, merchant bankers, and legal advisors.
- What
- Appointment of merchant bankers and legal advisors for minority stake sales in LIC and other financial institutions.
- When
- Appointments announced on Friday; sales to occur over three years.
- Where
- Not explicitly mentioned.
- Why
- To meet SEBI's minimum public shareholding norms.
- Entities for Stake Sale
- LIC, PSBs
- Merchant Banker Term
- 3 years
- LIC Public Float
- 3.5%
- LIC Deadline for 10% Float
- May 16, 2027
Sources
IDBI Bank stake sale nears key milestone, financial bids expected in Q3 FY26
DIPAM undertakes weekly capital review of PSUs to safeguard growth amid global uncertainty
Financial bids for strategic sale of IDBI Bank in Q3: DIPAM Secretary
Govt to call financial bids for IDBI stake sale by Oct-Dec: Divestment secy
IDBI Bank sale by March, financial bids in Q3
Govt to invite financial bids for IDBI stake sale by December: DIPAM Secretary
