Shares of Life Insurance Corporation of India (LIC) dropped as much as 4% to an intraday low of Rs 810 on the BSE on Wednesday after a report said the government could begin formal marketing next month for a proposed stake sale that may raise up to Rs 10,000 crore ($1 billion).

The government plans to sell a stake of about 2% in the state-run insurer in late June or early July to institutional investors, according to a Bloomberg report.

The Department of Investment and Public Asset Management (DIPAM), under the finance ministry, is working with Goldman Sachs Group, Motilal Oswal Investment Advisors, BNP Paribas SA, and IIFL Capital Services to manage the transaction, the report added.

India had earlier sold a 3.5% stake in LIC in May 2022 through what was then the country’s largest initial public offering, raising nearly Rs 21,000 crore. The shares were priced at Rs 949 apiece during the IPO.

As of March 31, the Indian government held a 96.5% stake in LIC, according to exchange data. The insurer has been given 10 years from its 2022 listing to comply with the Securities and Exchange Board of India’s requirement of maintaining a minimum public shareholding of 25%, giving the company until May 2032 to meet the norm.

LIC bonus issue

LIC has fixed May 29 as the record date to determine the eligibility of shareholders for the state-run insurer’s first-ever bonus issue in the ratio of 1:1.
The board had approved the plan in April to issue one fully paid-up equity share of Rs 10 each for every fully paid-up equity share of Rs 10 each held by eligible shareholders as of the record date. The company added that it will issue the bonus shares by capitalising up to Rs 6,325 crore from its reserves and surplus available as of December 31, 2025, which stood at nearly Rs 1.5 lakh crore.
LIC reported a consolidated net profit of Rs 23,467 crore for Q4 of FY26, marking a 23% year-on-year (YoY) rise from the Rs 19,039 crore profit reported in the corresponding quarter of the previous financial year. The firm’s net premium income, meanwhile, rose 12% YoY to Rs 1.65 lakh crore for the quarter under review, compared with Rs 1.48 lakh crore a year earlier.
For the financial year ended March 31, 2026, LIC reported a more than 5% rise in assets under management (AUM) to Rs 57.29 lakh crore, while net profit increased more than 19% year-on-year to Rs 57,419 crore.

With Wednesday’s decline, the stock has snapped a three-day gaining streak on the bourses.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Dipan Mehta, Director, Elixir Equities believes investors should stay selective in the current market environment, with opportunities emerging in sectors linked to power infrastructure, export-oriented manufacturing, and speciality chemicals, while caution remains warranted in overheated pockets such as hospitality and select data centre plays.

Speaking to ET Now, Mehta shared his views on a wide range of sectors including data centres, hotels, tyres, transmission & distribution companies, and speciality chemicals.

KRN Heat Exchangers: Strong Story, Expensive Valuation
On KRN Heat Exchangers, Mehta said the company continues to enjoy strong investor interest because of its exposure to the data centre ecosystem, a theme that remains in sharp focus globally.“See, I think that KRN is one of the best place on the data centre, that is what the street kind of evaluates, which is why it is treated at this kind of a multiple. But the story is pretty much well discovered and, of course, the numbers also will come through pretty decently over the next few quarters but the valuations are a bit challenging and from that point of view a fresh investment does not make sense but existing investors can remain invested.”

He added that India still has very few listed companies offering direct exposure to the data centre opportunity, which explains the premium valuations being assigned to ancillary players supplying equipment and products to the sector.
According to Mehta, investors should watch for corrections before considering fresh entry points.
“At corrections 5-10%, 15% lower one could look at it in a more positive light.”
Coal India: Cheap But Waiting for Growth
Discussing Coal India, Mehta described the stock as inexpensive but lacking meaningful growth momentum.

“And Coal India, see Coal India is cheap, everybody knows that, but look the volumes just do not scale up. I mean, if you look at 10-year volume, 15-year volume, it is just kind of static and it is supposed to be a very important company.”

He noted that investors may continue treating Coal India as a utility-style dividend play unless the company delivers a structural acceleration in growth.

“If there is something happening in the company materially which results in the growth rates going to like 12%, 13%, 14% or so, then even if the stock price has gone up one could jump into it because then you would have earnings growth and PE derating.”

On the company’s offer-for-sale discount, Mehta said the pricing appeared reasonable given the size of the issue and prevailing market conditions.

“I think that it is okay and 10% discount is not something which investors should not mind. It is a typical discount and maybe retail investors will buy it like in a form of a bit of arbitrage and some investors may also buy this and short in the futures market.”

Hospitality Rally Still Intact, But Caution Emerging
Mehta acknowledged the remarkable run seen in hotel and hospitality stocks since the pandemic, citing names such as Indian Hotels Company, Lemon Tree Hotels and newer listings in the sector.

“So, by and large hotels have done really well last two-three years, I think since COVID hotels have done very well right from Indian Hotels to even some other newer listings Lemon Tree, Ventive Hospitality, Leela, all of them have done very well.”

However, he warned that geopolitical uncertainties and a possible moderation in travel demand could create near-term pressure on the sector.

“So, I would be a bit cautious. It is like a running train, I would advise remaining invested but from a fresh investment perspective just kind of wait and watch.”

Mahindra Holidays: A Perplexing Underperformer
Among hospitality names, Mehta singled out Mahindra Holidays & Resorts India as an outlier that has failed to capitalise on the sector’s boom.

“That is what I said that it is very perplexing that the entire hotel industry has gone into great high growth phase but Mahindra Holidays has generally been reporting very poor set of numbers, flattish type of growth rates.”

Despite praising the company’s resort network and locations, he questioned the productivity and monetisation levels being achieved by the business.

“It has got a fabulous business. It has got a fantastic kind of a chain of resorts at the right location, but I do not think the productivity in terms of what they can earn from these resorts has reached its potential level.”

Tyre Sector: Balkrishna Industries Stands Out
Turning to tyre manufacturers, Mehta said most companies in the sector have delivered healthy results, aided by softer rubber prices, though margin pressure tends to emerge whenever raw material costs rise.

“It is also a highly competitive industry and I would say that it is pretty much well discovered and well valued at this point of time in terms of PE multiples.”

Among the tyre makers, he highlighted Balkrishna Industries as a company worth tracking closely because of its export orientation and strong positioning in off-highway tyres.

“The real company to watch out for over here is Balkrishna. It is a company in which we have invested in so our views could be biased.”

Mehta believes the depreciation of the rupee could support exporters such as Balkrishna Industries, especially as the company expands its product range and backward integration capabilities.

“So, I am keeping a watch out for it and at some point of time all the efforts of the management should bear fruit and they will go back to that earlier growth rate which they had delivered in the past.”

Power Transmission & Equipment: A Structural Opportunity
One of Mehta’s strongest sectoral calls remains the power transmission and equipment space, where he sees multi-year growth visibility driven by India’s renewable energy ambitions.

Referring to companies such as KEC International, Kalpataru Projects International and Transrail Lighting, he said short-term earnings fluctuations should not distract investors from the long-term opportunity.

“So massive transmission of power has to take place and India is going from 283 gigawatt to 500 gigawatt over the next three-four years in terms of renewable energy.”

He also highlighted opportunities across transformer makers and HVDC-linked companies, including multinational players such as Hitachi Energy, GE Vernova, Siemens and Bharat Heavy Electricals.

“So, I would say overweight on the entire power equipment industry because massive investments are taking place and are required and it is being pushed by the government as well.”

Speciality Chemicals Emerging as a Preferred Bet
Asked about the most attractive pocket of the market currently, Mehta pointed toward speciality chemicals, particularly export-driven businesses.

“No, we are looking more and more speciality chemicals and again, as I said, in our investment theme of export oriented businesses that is something which we are seeing kind of breakout quarters taking place over there.”

His comments indicate a growing preference for sectors that can benefit from global demand, currency depreciation, and India’s expanding manufacturing competitiveness.

New owners hail ‘long-term commercial opportunities in premium and high-performance automotive market’

A Merseyside car parts firm which went into administration has now been acquired by a company headed by its former directors who have pledged to recruit additional staff – though not all employees have welcomed the news

Knowsley-based Surface Transforms, which manufactured brakes for supercars, entered administration in April after losing its largest client, leaving dozens of employees without work.

Administrators from Alvarez and Marsal Europe have now confirmed that the majority of the business and assets of Surface Transforms have been purchased by new entity CCST Limited in a £1.4m deal. CCST’s directors include Ian Cleminson and Dr Kevin Johnson, both former directors at Surface Transforms.

Those assets comprise equipment, contracts, intellectual property and the right to use the Surface Transforms name.

The new firm intends to resume production of ceramic brake discs. In a statement the group said it “will be looking to employ workers in the area with the requisite skill set to assist with this”, reports the Liverpool Echo.

Numerous Surface Transforms employees lost their positions when the business went under, but the ten remaining staff at the company will now move to CCST under Transfer of Undertakings (Protection of Employment) TUPE regulations.

One former employee told the ECHO that when redundant Surface Transforms workers learnt of the sale there was “murder” and “everyone was kicking off.” Staff members revealed they had been encouraged to purchase Surface Transforms shares over the years, with those who had done so now facing the prospect of losing their entire investment. The statement announcing the latest transaction confirms there will be “insufficient realisations to pay any return to shareholders”.

The former employee indicated they had no intention of returning, stating: “If they’d asked me to go back in they know I’d have told them to shove it where the sun don’t shine”.

Surface Transforms revealed in March that it had lost a contract with General Motors that accounted for more than 80% of its revenue. Directors brought in advisers from Alvarez and Marsal as they fought to either sell or rescue the business, with scores of employees losing their positions.

Announcing the deal for the Surface Transforms assets, Ian Cleminson, chairman of CCST, said: “Surface Transforms built an exceptional reputation for innovation and engineering excellence within the global automotive sector.

“We are pleased to secure the future of the business and through the investor group provide the further investment, operational support and additional skills required for the business to satisfy the clear demand for the product.

“The manufacturing facility in Liverpool will continue operating, with a focus on consistently fulfilling existing customer programmes, stabilising production, and supporting the long-term commercial opportunities in the premium and high-performance automotive market.

“A thank you to our advisors at Hill Dickinson and DSW for their support during this transaction and also to Liverpool City Region Combined Authority, Knowsley Council and Seybourne Estates for their hard work in securing the future of the business at this site.”

Michael Magnay, joint administrator, added: “This transaction represents the best possible outcome for the business and its stakeholders. We are delighted to have completed a sale that enables the preservation of highly skilled jobs and maintains the future of this important UK manufacturing capability.”

The total value of the deal stands at £1.4m, which the administrators confirmed has been paid in full. Those funds will be directed towards covering administration costs and ultimately settling payments to creditors, though the precise sums owed to creditors have yet to be confirmed.

As part of the agreement, CCST has committed to paying £90,000 to finance giant Close Brothers “in respect of assets financed by Close”. CCST also has six months to decide whether it wants to buy a dynamometer owned by the original Surface Transforms that is held at a third-party site in Germany.

Back in 2023, Surface Transforms was celebrated as a “world class manufacturer” by Liverpool City Region Mayor Steve Rotheram, whose combined authority extended a £13.2m loan to the firm to support its growth and job creation ambitions.

READ MORE: Supercar brakes firm Surface Transforms loses biggest customer and hires restructuring advisersREAD MORE: Brakes firm Surface Transforms files administration notice and warns on job cuts after GM contract loss

Responding to news of the company’s sale out of administration, a Liverpool City Region Combined Authority spokesperson said: “The Combined Authority notes the sale of Surface Transforms as a going concern and is pleased that some of the workforce will be retained under the deal.

“We believe this is the best possible outcome under challenging circumstances and have engaged fully to help secure a future for this innovative advanced manufacturing factory and its skilled workforce.

“As custodians of public money, the Combined Authority is extremely diligent and careful when considering investments and enjoys an excellent record of repayment, often generating returns that are reinvested in the local economy, while driving business growth, job creation and regeneration. However, any investment comes with inherent risk. We will seek to recoup as much money as possible from the sale of the company.”