Stock in Focus: LIC Share Price Near IPO Level, Govt Set to Cut Stake via OFS; Buy or Avoid? Check Ratings

Shares of Life Insurance Corporation of India (LIC) will be in focus on Thursday, July 10, after government sources told CNBC-TV18 that approval has been granted for an Offer for Sale (OFS) in the company.

LIC Shares in Focus Today: Know Reasons Why?

LIC, India's largest insurer, has been a listed entity for over three years but continues to have a low free float in the market, with the government retaining a majority stake. As per the March quarter shareholding pattern, the government holds a 96.5% stake in LIC - the same level since the Rs 21,000 crore IPO in 2022, when only 3.5% was divested.

This stake is 21.5% higher than the Minimum Public Shareholding (MPS) norms mandated by SEBI. Based on current market prices, this excess holding is valued at around Rs 1.28 lakh crore. Every 1% stake sale by the government could potentially fetch close to Rs 6,000 crore.

Of the existing 3.5% free float, mutual funds own 1.13%, while over 23 lakh retail investors, each holding authorised capital up to Rs 2 lakh, collectively own 1.67%.

In May 2023, SEBI had allowed LIC to reach the 10% public shareholding threshold by 2027.

LIC launched its IPO in May 2022, raising Rs 20,557.23 crore, the largest in Indian market history at the time. This record stood for nearly two years until Hyundai Motor India surpassed it with a massive Rs 27,858.75 crore IPO in October 2024. The government sold its stake in LIC through an Offer for Sale (OFS), pricing the shares at Rs 949. Retail investors, employees, and policyholders received a discount of Rs 45 per share.

LIC Share Price As of Now

On Wednesday, LIC shares ended marginally lower at Rs 946, nearly flat compared to its IPO price of Rs 949. The stock has corrected from its 52-week high of Rs 1,222 and is up around 5.5% in 2025 so far.

Over the past year, LIC reached a 52-week high of Rs 1,221.50 on August 1, 2024. However, the stock declined sharply thereafter, falling 41.44% to Rs 715.35 by March 3, 2025, its lowest point in the past year. Its all-time low remains Rs 530.20, touched on March 29, 2023.

Should You Buy, Hold or Sell LIC Stock?

As for analyst sentiment, out of 20 analysts tracking LIC, 15 have recommended a "buy," 4 have suggested "hold," and 1 has issued a "sell" rating. The highest target price currently stands at Rs 1,320, while the lowest is Rs 825.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.