Govt to offload 1-2% LIC stake in Q4FY26 OFS amid muted investor demand

• Government plans to offload 1-2% stake in LIC via Offer for Sale (OFS) in Q4 FY26.
• The stake sale is estimated to fetch Rs 13,000–14,000 crore.
• This would be the first stake dilution since LIC's 2022 IPO.
• The smaller 1-2% tranche is due to subdued investor appetite and market conditions, revised from an earlier 2.5-3% plan.
• The sale aims to help LIC meet SEBI's minimum public shareholding norms, requiring 10% by May 2027.

Why It Matters: Govt's LIC stake sale impacts market, public shareholding, and state finances.