New Delhi: The Union Cabinet has approved the disinvestment of the country’s largest insurance company. LIC A senior official said on Monday that a panel headed by the Finance Minister will now decide on the quantum of stake.
The Department of Investment and Public Asset Management (DIPAM) in January appointed actuarial firm Milliman Advisors LLP India to assess the embedded value of LIC ahead of the IPO (initial public offering), which is considered to be the biggest public issue in Indian corporates. is. history.
Budget amendments to the LIC Act have been notified and the actuarial firm is expected to finalize the underlying value of the life insurer.
Under the embedded value method, the present value of an insurance company’s future profits is also included in its current net asset value.
“The Cabinet Committee on Economic Affairs last week approved the proposal for initial public offering of LIC. The alternate mechanism on disinvestment will now decide on the quantum of stake to be disinvested by the government,” the official said.
the government hopes that LIC IPO By the end of the current financial year, the official said.
Up to 10 percent of the LIC IPO issue size will be reserved for policyholders.
The government has already brought necessary legislative amendments to the LIC Act for the proposed IPO.
Deloitte and SBI Caps have been appointed as pre-IPO transaction advisors.
The listing of LIC will be crucial for the government to meet its disinvestment target. The government has set a target of raising Rs 1.75 lakh crore from minority stake sale and privatization in the current financial year.
Of the Rs 1.75 lakh crore, Rs 1 lakh crore is to come from the government’s stake sale in public sector banks and financial institutions. The remaining Rs 75,000 crore will come in the form of CPSE disinvestment proceeds.
In his budget speech in February this year, the Finance Minister Nirmala Sitharaman LIC’s IPO will be issued in 2021-22.
The Department of Investment and Public Asset Management (DIPAM) in January appointed actuarial firm Milliman Advisors LLP India to assess the embedded value of LIC ahead of the IPO (initial public offering), which is considered to be the biggest public issue in Indian corporates. is. history.
Budget amendments to the LIC Act have been notified and the actuarial firm is expected to finalize the underlying value of the life insurer.
Under the embedded value method, the present value of an insurance company’s future profits is also included in its current net asset value.
“The Cabinet Committee on Economic Affairs last week approved the proposal for initial public offering of LIC. The alternate mechanism on disinvestment will now decide on the quantum of stake to be disinvested by the government,” the official said.
the government hopes that LIC IPO By the end of the current financial year, the official said.
Up to 10 percent of the LIC IPO issue size will be reserved for policyholders.
The government has already brought necessary legislative amendments to the LIC Act for the proposed IPO.
Deloitte and SBI Caps have been appointed as pre-IPO transaction advisors.
The listing of LIC will be crucial for the government to meet its disinvestment target. The government has set a target of raising Rs 1.75 lakh crore from minority stake sale and privatization in the current financial year.
Of the Rs 1.75 lakh crore, Rs 1 lakh crore is to come from the government’s stake sale in public sector banks and financial institutions. The remaining Rs 75,000 crore will come in the form of CPSE disinvestment proceeds.
In his budget speech in February this year, the Finance Minister Nirmala Sitharaman LIC’s IPO will be issued in 2021-22.
.