LIC May Buy Additional NSE Shares After IPO, Retains Its 10.72% Stake Ahead of OFS

Life Insurance Corporation of India (LIC) may consider increasing its holding in the National Stock Exchange (NSE) after the exchange's proposed Initial Public Offering (IPO), as per The Hindu Businessline news report. LIC currently owns a 10.72% stake in NSE. 

Managing Director and CEO R Doraiswamy said the insurer would assess the IPO process and pricing before deciding whether to buy more shares. The decision will depend on the valuation and market conditions. 

LIC Opts Out of NSE Share Sale 

LIC has decided not to sell its existing NSE shares through the proposed offer-for-sale (OFS). The insurer will retain its holding through the transaction instead of participating as a selling shareholder. 

Doraiswamy told The Hindu BusinessLine that LIC could consider buying additional shares once the terms of the offering are known. The insurer's decision will be based on its assessment of the exchange's value. 

Insurance Reach Remains a Priority 

Alongside its investment activities, LIC is continuing plans to expand its insurance network. The corporation currently has a presence in around 92% of districts and nearly 56% of village panchayats. 

LIC is identifying panchayats where no agent is currently available and plans to increase representation in those areas. It expects to make substantial progress towards wider panchayat coverage within the next one to two years. 

Agency Network and Digital Operations 

The expansion is being supported by LIC's agency network, including the Bima Sakhi programme. The initiative currently has around 2.8 lakh active women agents involved in insurance distribution. 

LIC is also adapting its operations as more customers move towards digital services. The insurer is working on providing technology-based access to its products and services. 

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Changes in Product Mix 

The share of higher-margin non-participating products has increased to nearly 30% of LIC's annualised premium equivalent (APE), compared with around 7-8% at the time of its listing. 

LIC plans to keep this share in the 30-35% range. It is also reviewing the performance of its subsidiaries, associate companies, and overseas operations, with attention on their contribution to overall profitability. 

Read More: US-Based 3M Explores Expansion of R&D and Advanced Manufacturing Operations in India! 

Life Insurance Corporation of India (LIC) Share Price Performance  

As of August 31, 2026, 2:12 pm, Life Insurance Corporation of India (LIC) share price was trading at ₹416.95, a 1.20% decrease from the previous closing price. 

Conclusion 

LIC's decision on whether to increase its NSE stake will be taken after the IPO process progresses and the valuation becomes available. 

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