The Center aims to list the public sector insurance company LIC’s IPO by the last quarter of the current financial year. For this, other preparations are going on from the appointment of merchant bankers.
LIC’s IPO will soon hit the market
After the approval of LIC’s IPO received from the Union Cabinet last week, it can be launched in the market soon. For this the preparations were intensified. It is believed to be the biggest IPO ever. A top official said that the Center aims to list public sector insurance company LIC by the last quarter of the current financial year and merchant bankers will be appointed soon for the transaction.
Regarding this, Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM) told TOI in an interview, “We are looking at the fourth quarter and work is underway on several fronts for the IPO.” He also said that the committee headed by Finance Minister Nirmala Sitharaman will decide on the exact quantum of share sale. The Department of Financial Services is working on meeting other requirements for the IPO.
Let us tell you that this IPO of LIC is the biggest and it is estimated that it can go from Rs 90,000 crore to Rs 1 lakh crore. Through this, the government will get revenue. The LIC Act of 1956 has been amended. The draft prospectus for the IPO will also be filed soon. DIPAM Secretary said that discussions are on with the stock market regulator for compliance of other requirements for the IPO.
Emphasis is being given on product restructuring
After the approval of the Cabinet Committee on Economic Affairs (CCEA) for LIC IPO, the government is trying its best to get the IPO of the country’s largest insurance company in the market by the end of the current financial year. According to sources, the ministerial panel will now decide on other aspects related to the IPO. Life Insurance Corporation is working on increasing its value as much as possible. Apart from this, emphasis is also being laid on internal efficiency and product restructuring. The central government has selected SBI Capital Markets and Deloitte as advisors before the IPO.
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