Government Considers Further LIC Stake Sale via FPO in Next Fiscal Year

• Government mulls reducing its 96.5% stake in LIC through a Further Public Offering (FPO) in the next financial year.
• DIPAM has been asked to evaluate the stake dilution, with FPO dependent on approvals and market conditions.
• The government needs to offload another 6.5% stake by May 2027 to meet the 10% public shareholding mandate.
• LIC's market capitalization stands at Rs 5.08 lakh crore, with shares at Rs 804 on BSE.
• LIC reported a 32% jump in net profit to Rs 10,053 crore for Q2 FY26, driven by lower commission outgo.

Why It Matters: Government plans to further reduce its stake in LIC through an FPO in the next fiscal year.