LIC IPO LIC's IPO likely by 4th qtr of this financial year, says DIPAM Secretary
Mumbai/IBNS: State-backed Life Insurance Corporation's (LIC) IPO is expected to hit the market by the fourth quarter of the present financial year, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said Wednesday, media reported.
Pandey was speaking at the CII Global Economic Policy Summit 2021.
"The Indian government aims to privatise 5-6 state-owned companies in FY22. Financial bids for half a dozen CPSEs to be invited in Dec-Jan," Pandey added, reported Economic Times.
The state-owned insurer's Initial Public Offer is expected to raise Rs 10 trillion ($133 billion) via the sale of a 10 percent stake, according to Bloomberg.
The sale of a five percent stake would make it India’s largest IPO, while a 10 percent dilution would make it the second-biggest of an insurer globally, it added.
The Centre might allow foreign direct investment (FDI) in LIC to enable a stronger demand of diversified investors.
Various banks are also expected to reach out to anchor investors for LIC's IPO launch.
The government has selected Goldman Sachs, JP Morgan Chase & Co, ICICI Securities, Kotak Mahindra Bank, Citigroup, SBI Capital Market, Axis Capital, Bank of America Securities, Nomura amongst others to work on Life Insurance Corp. of India’s IPO, reports said.
In this year's budget address, Finance Minister Nirmala Sitharaman's mentioned a disinvestment target of Rs 1.75 lakh crore.
This includes disinvestment in public sector undertakings (PSU's) IDBI Bank, BPCL, Shipping Corp, Container Corporation, Neelachal Ispat Nigam Ltd, Pawan Hans and Air India.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
