Life Insurance Corporation of India has reduced its holding in Steel Authority of India Ltd by just over 2 percentage points, selling more than 8.26 crore shares through market transactions and taking its stake in the state-owned steelmaker below the 5% threshold. According to the latest disclosure dated September 2, 2026, LIC sold 82,632,513 SAIL shares between April 28 and September 1, 2026. Following these transactions, the insurer's holding fell from 6.625% to 4.625%. The sale was classified as a market transaction under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, with SAIL's total equity share capital remaining unchanged at ₹41,305.25 crore during the transaction period.
Before the latest round of sales, LIC held 273,665,481 shares in SAIL, equivalent to a 6.625% stake. Its holding has now declined to 191,032,968 shares, representing 4.625% of the company's total share capital and voting rights. As reported by Livemint and NDTV Profit, the transactions reduced LIC's stake by 2.001 percentage points and were classified as market sales in the regulatory filing. The latest filing does not disclose the price at which LIC sold the shares or the total value of the transactions. LIC has clarified in its regulatory disclosure that it does not belong to SAIL's promoter or promoter group.
The latest sale extends a broader reduction in LIC's shareholding in the steel producer. According to Livemint and NDTV Profit, in April 2026, LIC disclosed that it had sold around 8.51 crore SAIL shares, reducing its stake from 8.687% to about 6.626%. With the latest transactions, the insurer has now brought its holding below 5%. The two rounds of share sales mean LIC has reduced its stake in SAIL by more than four percentage points since its holding stood at 8.687% earlier this year. This strategic exit from the higher-disclosure bracket for this specific entity marks a significant shift in LIC's approach to institutional shareholding.
Despite the latest sale, LIC continues to hold 4.625% of SAIL's share capital and stated in its regulatory disclosure that it does not belong to the company's promoter or promoter group. As reported by Livemint and NDTV Profit, the reduction in shareholding comes after a strong period for SAIL's stock, which has gained nearly 59% over the past year. SAIL remains one of India's largest public sector steel producers, while LIC continues to manage investments across a wide range of listed companies. The reduction in LIC's stake brings its holding below the 5% threshold, which is the regulatory trigger for substantial acquisition disclosures under SEBI regulations, potentially impacting SAIL's share price volatility and institutional investor sentiment.
