Life Insurance Corporation of India (LIC) on Monday, July 21, said that the company has raised its stake in State Bank of India through a qualified institutional placement (QIP).
The insurance giant has raised its stake to 9.49% from 9.21% earlier.
LIC said in a regulatory filing on Monday, “…You are hereby informed that Life Insurance Corporation of India (“Corporation”) has increased its shareholding in the equity shares of State Bank of India (“SBI”) from 81,465,986.9 to 87,585,938.0 i.e. from 9.21% to 9.49% of the paid-up capital of SBI.”
On Monday, LIC shares closed marginally higher by 0.63% at ₹928.95 per share, while State Bank of India shares closed 0.15% higher at ₹824.60 per share.
Last week, the board of State Bank of India approved the QIP and fixed the floor price at ₹811.05 per share.
People familiar with the matter had told various news platforms that Life Insurance Corporation of India (LIC) could be the largest anchor investor with a potential bid of over Rs 500 crore.
Meanwhile, news agency PTI had reported earlier this month that the government was working on selling more stake in LIC.
The Department of Disinvestment would work out the details of the transaction, news agency Press Trust of India had reported on July 10, quoting people familiar with the matter.
The government currently holds a 96.5% stake in LIC. It had sold 3.5% stake through an initial public offering (IPO) in May 2022 at a price band of ₹902-949 per share. The government got about ₹21,000 crore from this share sale.
People aware of the matter told PTI that the government has approved further share sale in LIC through OFS and the talks are still in the initial stage.
The government will have to sell another 6.5% stake in the public sector life insurance company to meet the mandatory 10% public shareholding requirement by May 16, 2027.
The source further said that the quantum, price and timing of the stake sale will be decided in due course.
LIC’s June premium income
Meanwhile, the insurance company recorded a 14.6% year-on-year growth in individual premium in June 2025, far higher than the 12.12% growth in premium income of private life insurance companies.
In June 2025, LIC collected ₹5,313 crore as individual premium, while the total contribution of 25 private sector companies was ₹8,408 crore.
During June 2025, the total policies issued by LIC stood at 12.49 lakh, while the number was 14.65 lakh in the same period last year. In the individual policies category, LIC issued 12.48 lakh policies for June 2025, while the number was 14.62 lakh in 2024. The number of group policies stood at 1,290 last month, down from 2,827 in June 2024.
In group premium income, LIC earned ₹22,087 crore, down 7% compared to June last year. Group premium income of the private sector stood at ₹5,315 crore, a decline of 19%.
The total premium income of LIC declined by 3.43% to ₹27,395 crore during the month. The total premium income of private sector companies declined by 2.45% to ₹13,722 crore.
