The central government has set a target of raising Rs 1.75 lakh crore through disinvestment in the general budget presented for the financial year 2021-22. The government will bring an IPO of the country’s largest insurance company LIC in the next financial year to meet this goal. Along with this, the government plans to sell its stake in 2 other PSU banks along with Shipping Corporation of India (SCI) and IDBI Bank. Meanwhile, the Department of Investment and Public Asset Management (DIPAM) secretary Tuhin Kanta Pandey has given information about the IPO of LIC and the date of the stake sale of Air India with BPCL.
The DIPAM Secretary said that the IPO of LIC will come after October, 2021. At the same time, the process of stake sale in BPCL and Air India will be completed before the first half of the next financial year i.e. September. The DIPAM Secretary said that the Central Government has introduced the Legislative Amendment in Parliament along with the Finance Bill i.e. Budget 2021 for the legislative approval required to start the process of disinvestment in LIC and IDBI Bank. It will not have a separate bill, as it has been included in the finance bill itself.
13 February is the last bidding date for SCI
Let us tell you that the Union Government has set a target of record capital expenditure for the next financial year in the budget, in which the amount spent will be raised through the disinvestment of PSUs. The Central Government has already received bids from Air India and BPCL for Expression of Interest (EoI). At the same time, the last date for submission of EoI to buy government stake in Shipping Corporation of India (SCI) is 13 February 2021.
Plans to sell 25% stake in LIC
DIPAM has appointed actuarial firm Milliman Advisor for the valuation of the company before the IPO of LIC. Whereas, Deloitte and SBI Capital have been appointed as pre-IPO advisors. Let us tell you that Modi Government is planning to sell its 25% stake in LIC in several stages. is. However, the government will sell only a 10 per cent stake in the first phase. There are plans to sell the other stake in multiple rounds after that. According to the current valuation, the central government can get more than Rs 2 lakh crore by selling its 25% stake in LIC.