New Delhi, March 11 -- The central government may divest 2-3% of its stake in Life Insurance Corporation (LIC) in 2025-26, depending on market conditions, as part of its efforts to meet the mandated 10% public shareholding requirement by 2027, two people familiar with the matter told Mint.

The stake sale may be carried out in multiple small tranches rather than a single offering during the upcoming fiscal year, provided market conditions are favourable, as the Centre aims to maximize the value of its shareholding in the insurer.

"The government wants to maximize the value of LIC stock. Given the company's size and market capitalization, any share sale will be significant for the market," the first person mentioned above said, requesting...