Government to sell part of its holdings in LIC through IPO: Nirmala Sitharaman proposes in Union Budget
New Delhi/IBNS: In her Union Budget, Finance Minister Nirmala Sitharaman on Saturday proposed to sell a part of the government's holding in largest insurer Life Insurance Corporation of India.
She also proposed to sell the government's remaining stake in Industrial Development Bank of India (IDBI).
"The government now proposes to sell a part of its holding in LIC by way of Initial Public Offer (IPO)," the Minister said in her Budget speech.
"This shall also be an opportunity for retail investors to participate in the wealth so created," she said.
In order to unlock private capital, Sitharaman proposed the sale of the balance holding of Government of India in IDBI Bank to private, retail and institutional investors through stock exchange.
On the back of bank consolidation and capital infusion of Rs. 3,50,000 crore into Public Sector Banks (PSBs), the Finance Minister asserted that governance reforms would be carried out to make them more competitive, transparent and professional and thereby ensure a robust banking system.
A few PSBs would also be encouraged to approach capital market to raise additional capital.
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