New Delhi: The Government of India has completed a key step toward its planned stake sale in Life Insurance Corporation of India (LIC) by finalising the appointment of merchant bankers and legal advisors, according to Arunish Chawla, Secretary, Department of Investment and Public Asset Management (DIPAM).
“We have completed the RFP [Request for Proposal] appointment process. The appointment of merchant bankers and legal advisors is now done,” Chawla stated.
The merchant bankers have been appointed with a tenure of three years, extendable up to five years, and are expected to play a central role in not just LIC’s strategic disinvestment, but also in handling similar mandates across other financial institutions. This move signals a more structured and long-term approach to capital market transactions involving public sector financial entities.
“Merchant bankers appointed will cater to all financial institutions,” Chawla confirmed.
US Tariff Decision Won’t Deter PSU Listings, Says DIPAM
Addressing concerns over the recent 25% tariff imposed by the US and its potential impact on India’s public sector disinvestment program, Chawla maintained a confident outlook.
“We have taken everything in stride,” he remarked, assuring that the disinvestment momentum will continue.
He also reiterated the government’s commitment to strengthening public sector banks (PSBs) and public sector undertakings (PSUs), adding that weekly capital reviews are being conducted to ensure the financial robustness of these institutions.
“The government is supporting public sector banks, and we are reviewing the capital position of all PSUs on a weekly basis,” he said.
Chawla further stated that DIPAM is actively developing strategies to shield the Indian economy from emerging geopolitical risks, underscoring the administration’s proactive stance in safeguarding macroeconomic stability.
read also: LIC Ties Up with AU Bank to Boost Life Insurance Access Across India – Details Inside
PSUs: A Growing Share of India’s Markets
Highlighting the growing market presence of state-run enterprises, Chawla noted that public sector enterprises now account for nearly 15% of India’s equity markets, marking a significant rise in their visibility and valuation over recent years.
The developments come at a time when India’s strategic disinvestment agenda is regaining pace, with major transactions—including IDBI Bank and several energy-sector PSUs—underway. The LIC stake sale, in particular, is viewed as a litmus test for investor sentiment towards large-scale public sector divestments amid global economic headwinds.
About LIC
The Life Insurance Corporation of India (LIC) is a statutory corporation established under the LIC Act of 1956. It is India’s largest insurance company and the largest institutional investor. LIC’s primary goal is to provide life insurance and financial security to individuals, with a focus on spreading insurance widely, especially in rural areas.
