Politics · India Bureau
ICICI Pru, SBI mutual funds lead LIC share buyback in August
Two major fund houses acquired over half of the government's ₹31,552 crore offer for sale of Life Insurance Corporation shares last month. Mutual funds collectively dominated the offering, accounting for more than three-quarters of the total stake sold.
LSN India ·
ICICI Prudential Mutual Fund and SBI Mutual Fund jointly purchased LIC shares valued at ₹17,145 crore during the government's August offer for sale, according to data from the disinvestment programme. The dual purchase represented approximately 54 per cent of the total shares divested by the government during the month.
Mutual funds emerged as the dominant investor category in the LIC share sale, collectively acquiring an estimated 76.5 per cent of the offered securities. This substantial participation from the fund management industry underscores growing institutional appetite for stakes in India's largest insurer, which completed its initial public offering in May 2022.
The government's continued disinvestment of its LIC holding forms part of its broader strategy to raise funds through strategic asset sales. The ₹31,552 crore offering represented a significant portion of the government's planned stake reduction in the insurance company, with retail investors and foreign portfolio investors accounting for the remainder of the sale.
The strong showing by mutual funds reflects investor confidence in LIC's business model and growth prospects. ICICI Prudential and SBI Mutual Fund's combined commitment to the offer underscores the confidence of India's largest fund managers in the state-owned insurer's medium to long-term performance.