The government has set a target of raising Rs 1.75 lakh crore through disinvestment in the current financial year. To achieve this goal, it is important for the government to list LIC in the market.
Country’s biggest IPO may come this month
The government has started the process of selling stake in Life Insurance Corporation of India (LIC). Bids are invited from Merchant Bankers and Legal Advisors for assistance and advice regarding the proposed Initial Public Offering. The Department of Investment and Public Asset Management (DIPAM) will appoint up to 10 merchant bankers and one law company to assist and advise in the stake sale. According to the notice of DIPAM, the last date for submission of bids is August 6.
Last week, the Union Cabinet approved the Initial Public Offer (IPO) of LIC. The modalities like issue size, pricing and timing will be decided by a committee headed by Finance Minister Nirmala Sitharaman. The government has set a target of raising Rs 1.75 lakh crore through disinvestment in the current financial year. To achieve this goal, it is important for the government to list LIC in the market.
Policyholders will get discount
Modi government minister Anurag Thakur had told in response to the question during the Parliament session that LIC can fix a separate quota for customers in its IPO. 10% of the issue size can be reserved for policyholders. According to the news of the English newspaper Financial Times, LIC’s IPO can come by the end of the current financial year 2021-22 i.e. by 31 March 2021. In addition, Deloitte and SBI Caps have been appointed as pre-IPO transaction advisors.
Country’s biggest IPO
It is believed that LIC’s IPO will be the biggest IPO in the country. It has been 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. 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.
(with language input)
read this also:
Gold Silver price today: Gold became cheaper in rupee today, know the latest price of 10 grams of gold today
Weekend Ka Vaar, market at record high, Nifty Metal and Nifty Pharma index on top