Finance Minister Nirmala Sitharaman has announced to sell LIC’s stake in the budget. Now in this regard, the statement of Deepam Secretary Debashish Panda has come that the government may bring the IPO of LIC in October or thereafter.
27 laws will change
According to Deepam Secretary, LIC has been formed under the 1956 Act which does not have a provision like IPO. In such a situation, the government will have to make several major amendments to get an IPO. He says about 26 -27 amendments will have to be changed, then LIC’s IPO will come.
Valuation is 8 to 10 lakh crores
LIC is one of the largest cash rich companies in the country and also acts as a savior for the government at various times. When it needs money or needs help in disinvestment, LIC is the government. According to estimates, the market valuation of LIC at present is around 8 to 10 lakh crores.
One lakh crores can come in one stroke
There is a possibility that the government may sell its stake up to 10 per cent through an IPO of LIC. If this happens, the government may get one lakh crore rupees in one stroke, given the good valuation of the company.
Customers will also get the benefit of transparency
Once LIC is listed in the stock market, it will have to give information to the stock market about what it does about the customers’ money, where it invests. This will definitely increase transparency and increase accountability of the company.
Retail investors also benefit
Apart from this, when LIC’s IPO comes, small investors will also get the opportunity to buy shares of LIC. Looking at the valuation of the company can also give them good returns.
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