LIC IPO Date: The initial public offering (IPO) of LIC, the country’s largest insurance company, may come after October this year. A top official indicated this in the government’s disinvestment plan on Tuesday. Apart from this, the sale of state-run airlines Air India and oil company BPCL will be completed by the first half of the current financial year i.e. this year by sitankar. Finance Minister Nirmala Sitharaman announced the IPO of LIC in the budget speech on Monday. The government plans to reduce its 25 per cent stake in LIC.
In an interview with news agency PTI, the Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kant Pandey said that the government has reduced the stake in Life Insurance Corporation of India (LIC) and IDBI through Finance Bill 2021 presented with the budget. Necessary legislative amendments are introduced. Let us know that LIC’s IPO was to come last year, but due to some reasons it was delayed. It is believed that the IPO of LIC has been delayed due to Corona virus epidemic.
The Modi government has set a target of record capital expenditure in the next financial year to boost the economy. Money for additional resources will be raised through disinvestment and monetization. Initial interest of sale of BPCL and AI has been found. Similarly, for the Shipping Corporation of India (SCI), by February 13, the expression of interest will be available.
Pandey says, “The amendment to the LIC Amendment Act and the IDI Bank Act is part of the Finance Bill. There will not be a separate biography for this. LIC’s IPO to be launched after October. ” DIPAM deals with disinvestment in government companies. Prior to the IPO to assess the value of LIC, the department has selected select exurial firm Milliman Advisors. While Deloy and SBI Cap have been appointed as pre-IPO transaction advisors.
Regarding the strategic cell of IDBI Bank, Pandey said that IDBI was initially a financial development institution. When IDBI became a bank in 2002, it was the IDBI Repeal Act, under which banking operations and licenses were granted. Therefore, the license would continue even in the event of disinvestment. In such a situation, we prepared a roadmap for amending the law with the RBI, which is part of the Finance Bill.
Target to raise Rs 1.75 lakh crore from disinvestment
Finance Minister Nirmala Sitharaman has set a target of raising Rs 1.75 lakh crore from disinvestment in the financial year 2021-22. The government will raise this amount in the next financial year by selling its stake in 2 public sector banks and 1 insurance company. Disclosing the policy of privatization of Public Sector Enterprises (PSEs), the Finance Minister said that the government will sell its stake in all PSUs except 4 strategic sectors. The NITI Aayog has been asked to make a list of PSUs in which the government will sell its stake.
The government had targeted to raise Rs 2.10 lakh crore from the disinvestment of Central Public Sector Undertakings (CPSEs) in the current financial year. However, in view of the circumstances arising out of the COVID-19 epidemic, the government has drastically reduced the disinvestment target for the current financial year to Rs 32,000 crore. Out of the total disinvestment target of Rs 1.75 lakh crore in FY 2021-22, one lakh crore rupees will be raised from the sale of government stake in public sector banks and financial institutions. 75,000 crore rupees will come from CPSE disinvestment.