India's government recently conducted investor roadshows in London to gauge interest in a further minority stake sale in the state-run General Insurance Corporation of India (GIC Re), according to two government sources familiar with the matter.

The outreach by officials from the Department of Investment and Public Asset Management (DIPAM) signals ongoing efforts to reduce the state's holdings, even as the overall pace of divestment has slowed. This follows a 3.4% stake sale in the insurer completed in September 2024.

Despite that transaction, the government still holds a dominant 82.4% stake in GIC Re. Market conditions present a challenge, with the company's shares currently trading about 3.5% below the price set in last year's offering. A key factor driving potential sales is a market regulation requiring all listed Indian firms to maintain a minimum public shareholding of 25%.

Divestment remains a fiscal priority for the government, though receipts have moderated. The state raised 175 billion rupees ($1.93 billion) from stake sales in 2024/25 and aims to collect 470 billion rupees through such sales and asset monetisation in the current financial year ending March 2026. India's finance ministry did not immediately respond to a request for comment.

($1 = 90.7700 Indian rupees)