Government refutes speculations of delay in LIC’s IPO, says- ‘Definitely’

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Government refutes speculations of delay in LIC’s IPO, says- ‘Definitely’

Highlight

  • Government refutes speculations about delay in LIC’s IPO
  • Planning is ready for IPO in the last quarter of the current financial year: Tweets Secretary, DIPAM
  • Govt banking on LIC IPO and BPCL strategic sale list to complete its disinvestment

The Center refuted media speculations around Life Insurance Corporation’s (LIC) initial public offer (IPO) and said that LIC is unlikely to come up with an IPO in the current financial year ending March 2022.

The Secretary, Department of Investment and Public Asset Management tweeted, “Some media speculations doubting the viability of LIC IPO in this financial year are not correct. It is reiterated that the plan is ready for IPO in the last quarter of this financial year.” “

The government is relying on listing of LIC IPO and strategic sale of BPCL to complete its disinvestment. Recently, while speaking about disinvestment, Finance Minister Nirmala Sitharaman had said that the government is making good progress.

In her budget speech 2021, Sitharaman had said that LIC’s IPO will be launched in the financial year beginning April 1. At present, the government holds 100 per cent stake in LIC.

As per the amended law, the authorized share capital of LIC will be Rs 25,000 crore, divided into 2,500 crore shares of Rs 10 each. Up to 10 percent of the LIC IPO issue size will be reserved for policyholders.

Once listed, LIC is likely to become one of the largest domestic companies by market capitalization with an estimated valuation of Rs 8-10 lakh crore.

The Department of Investment and Public Asset Management (DIPAM), which manages the government’s equity in state-owned companies, has selected actuarial firm Milliman Advisors to ascertain the embedded value of LIC to meet the government’s disinvestment target. has done.

Read also | INirmala Sitharaman to hold pre-budget consultations with representatives of services, business sectors

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