LIC Housing Finance shares add 3% after government announces LIC IPO

Shares of LIC Housing Finance gained over 3 per cent after Finance Minister Nirmala Sitharaman in her Budget speech proposed to float the IPO of Life Insurance Corporation (LIC).

At 1.02 pm, the stock was up 3.19 per cent to Rs 451.65.

Amar Ambani of YES Securities said the government divestment was based largely on the back of LIC IPO. It is much higher than our target of Rs 1.35 lakh crore, he said.


"IPO of LIC will bring transparency in its functioning," said Anil Rego, Founder & CEO, Right Horizons.

LIC IPO will bring more effectiveness and good governance practice in LIC, said Pavan Kumar Vijay, founder at Corporate Professional Group.

Shares of IDBI Bank, in which LIC holds a majority stake, jumped over 15 per cent after the government's announcement to divest remaining stake in the lender. The stock was up 14.16 per cent at Rs 38.70.