The Indian government is planning to sell its shares in several public sector companies during this financial year. One of the biggest and most awaited sales will be of its stake in Life Insurance Corporation of India (LIC). This was confirmed by Arunish Chawla, who is the Secretary of the Department of Investment and Public Asset Management (DIPAM).
In an interview with CNBC-TV18, Chawla explained that the government has a clear plan. It wants to sell its shares in public companies (called disinvestment) and also earn good dividends (profits shared by companies). The goal is to involve more ordinary people in these companies and give them a share of the returns.
LIC Disinvestment: Bringing LIC to Every Home
Chawla confirmed that the government is planning to sell more shares of LIC. He said that retail investors (everyday people) and LIC policyholders will also get a chance to buy these shares. His goal is to make LIC a part of every Indian household.
At present, the government owns 96.5% of LIC. In 2022, it sold 3.5% of its stake in an IPO (Initial Public Offering).
Successful Sale of Mazagon Dock Shares
Recently, the government sold shares of a company called Mazagon Dock, and it was a big success. Chawla explained that even though the market mood was uncertain, the timing was perfect. The shares were in high demand, and the offer was oversubscribed (more people wanted to buy than there were shares available). He said that this kind of success builds more confidence in the market.
Shares for Retail Investors
The sale of Mazagon Dock shares will now be open to retail investors (small and individual investors), after the non-retail portion (for big investors) received a great response last week.
DIPAM’s Smart Strategy
Chawla said the reason behind this success is DIPAM’s internal strategy, which they call the “DIPAM model”. This model looks at how well the company is doing, how much dividend it is paying, and what the market conditions are. Based on this, they decide which company’s shares to sell and when.
He said, “We are relaxed because our model tells us the best time to sell shares. That’s why the Mazagon Dock sale worked so well. And you can expect more such moves in the future.”
Making Public Companies Role Models
Chawla also said that the government wants public sector companies to become examples of success in the stock market. He said this is part of the Prime Minister’s vision to share the country’s wealth with the “aam aadmi” (common man).
The government has also set a dividend rule for public companies:
They must give either 30% of their net profit or 4% of their net worth—whichever is higher—to shareholders as dividends. This ensures both the government and small shareholders get regular returns.
Record Dividends Last Year
In the last financial year, public companies paid record dividends of ₹1.4 lakh crore. Out of this, ₹74,000 crore went to the government, and the rest went to retail investors, mutual fund holders, and senior citizens.
Chawla said this is not by chance—it’s part of a planned strategy. When asked if the next year (2026) could bring even better results, he used a sports example: “Like good players, we will dribble smartly in the market, and strike goals at the right time.”
A Message to Private Companies and Investors
Chawla encouraged the private sector to learn from public sector companies. He advised small investors and mutual fund managers to always include Public Sector Enterprise (PSE) stocks in their portfolios because they give regular and fair dividends.
He also urged private companies to be fair and transparent by giving good dividends to shareholders. “Let’s work together to make the stock market a better and fairer place for the common people,” he said.
