LIC IPO: SEBI said that companies whose market cap will be more than Rs 1 lakh crore after the issue, they can issue 5 per cent stake through IPO instead of 10 per cent.
The mega IPO of Life Insurance Corporation of India (LIC), India’s largest insurance company, may come after October this year. Prior to LIC’s IPO, market regulator SEBI has changed the rules of public issue. SEBI said that companies whose market cap will be more than Rs 1 lakh crore after the issue, they can issue 5 per cent stake through IPO instead of 10 per cent. Changes in these rules will make it easier to bring an IPO of LIC.
Explain that Finance Minister Nirmala Sitharaman had announced in the speech of Union Budget 2021 that the IPO of LIC will come in the year 2022. He said that legislative amendments to this effect will be introduced in Parliament in the budget session. The government plans to sell 10 per cent stake in LIC. The government has set a target of disinvestment and privatization of Rs 1.75 lakh crore for the financial year 2021-22.
LIC’s IPO hardly came this year
What is the rule now
SEBI said that now a company can sell 5 percent stake through IPO instead of the existing 10 percent. With this, they will get 5 years instead of 3 years after listing so that they can increase the minimum public holding in the company to 25 percent.
Currently, after the IPO, companies whose market cap is Rs 4,000 crore or more, they have to bring an IPO for at least 10% stake. Apart from this, they have to maintain a minimum 25% minimum public shareholding within 3 years from listing. Now it has been extended by SEBI to 5 years.
LIC earns 1 lakh crore rupees from premium
LIC has received a record premium of Rs 1 lakh crore in the first 10 months of the current financial year in its pension and group scheme section. According to LIC, this is the first time that such a huge amount has been received as premium income in any one section of the Life Insurance Corporation. This is the second consecutive year when good premium income has been received in this section. According to the company’s statement, the assets under management in this section, which manages the group scheme and retirement benefits, is more than Rs 7 lakh crore.
