The Indian government is targeting to raise at least $1.3 billion by selling a minimum of 2.5% stake in Life Insurance Corp. (LIC). This move is a crucial step towards fulfilling the company's mandatory minimum public float rules.

The sale is expected to be a significant event in India's divestment program. LIC, a state-owned insurance behemoth, has been under pressure to increase its public shareholding to comply with Securities and Exchange Board of India (SEBI) regulations. The current public float is below the stipulated 25% required for listed companies.

This share sale represents a strategic effort by the government to boost its revenue and adhere to regulatory requirements. The exact timing and details of the offering are still being finalized, but the intention to divest a substantial portion of its stake is clear. The government hopes this will also enhance LIC's market value and corporate governance.