Life Insurance Corporation of India (LIC) has lowered its stake in Steel Authority of India Ltd (SAIL) to below 5%, selling over 8.26 crore shares through market transactions, according to livemint.com. The sale reduced LIC's holding by just over 2 percentage points, marking a significant divestment in the state-owned steelmaker.
The insurer executed the offloading of shares in a series of market transactions that culminated in the reduction of its stake below the regulatory threshold of 5%. This move follows LIC's broader strategy to manage its portfolio and comply with regulatory norms that require disclosure and limits on shareholding percentages. The exact timeline of the transactions was not detailed, but the reduction was confirmed on September 2, 2026.
LIC's divestment in SAIL comes amid a wider trend of institutional investors adjusting their holdings in public sector undertakings to optimize returns and meet regulatory requirements. SAIL, a key player in India's steel industry, has attracted significant institutional interest, but LIC's stake reduction may influence market perceptions and share liquidity. This sale is notable given LIC's historical role as a major shareholder in several state-owned enterprises.
Following the sale, LIC's holding in SAIL now stands below the 5% mark, a threshold that triggers specific regulatory disclosures and obligations. The insurer's decision to offload 8.26 crore shares was reported by livemint.com on September 2, 2026, providing a clear data point on the scale of the transaction and its impact on LIC's portfolio.