The Modi government can raise from Rs 400 billion to Rs 1 lakh crore through the IPO of the public sector insurance company Life Insurance Corporation.
The government is working on a plan to sell its 5 to 10 percent stake in the insurance company (Government Stake Sale).
New Delhi. The Narendra Modi government at the Center is trying to fix the value of Life Insurance Corporation (LIC IPO) between Rs 8 and 10 lakh crore before bringing a public offer. However, the expected LIC valuation will be decided after preliminary negotiations, post-negotiated changes, paperwork and official valuation reports. It is being told that the government is working on a plan to sell its 5 to 10 percent stake in the company.
The government will reduce the fiscal deficit gap,
if the valuation of LIC is Rs 10 lakh crore, the government can raise from Rs 400 billion to Rs 1 lakh crore through IPO. It is believed that this will be the biggest IPO of the country so far. The central government wants to reduce the fiscal deficit gap through funds raised from LIC’s IPO. The Center has set a target of raising Rs 1.75 lakh crore through disinvestment in this financial year. The central government is also considering to allow Foreign Direct Investment (FDI in LIC) in LIC. Last week, some bankers met government and LIC officials to formally start the process of IPO.
10 Merchant Bankers appointed for IPO 10 Merchant Bankers have been appointed to manage LIC IPO. These include Goldman Sachs (India) Securities, Citigroup Global Markets India and Nomura Financial Advisory & Securities India. According to the Department of Investment and Public Assets Management (DIPAM), the bankers selected to manage this IPO are SBI Capital Markets, JP Morgan India, ICICI Securities and Kotak Mahindra Capital Company Limited.
Today is the last day to send bids for Legal Advisor DIPAM is also in the process of appointing Legal Advisors for stake sale. The last date for sending bids for this is 16 September 2021 i.e. today. The company’s IPO is expected to come in the January-March 2022 quarter.
10% share will be reserved for policyholders In the country’s largest IPO, 10% share will be reserved for policyholders. That’s why LIC has started the process of allotment in IPO for policyholders. The company has started building a database of eligible policyholders as the company has more than 29 crore policy holders.
This information was given by the Finance Minister in the budget speech This year, in his budget speech, Finance Minister Nirmala Sitharaman had said that in this fiscal year, BPCL, Air India, Shipping Corporation of India, Container Corp of India, IDBI Bank, BEML, Pawan Hans, There are plans to sell stake in many other companies including Neelachal Ispat Nigam.
