Deck Cleared for LIC’s IPO
India's largest insurer LIC is all set to bring out its IPO as the Union Cabinet has cleared the disinvestment proposal. LIC is expected to debut on bourses by the end of the current fiscal, and the process for that has already commenced.
After the cabinet's clearance, the government is likely to appoint an actuarial firm soon to finalise the embedded value of the life insurer. The quantum of stake dilution will be decided at the later part of the process.
The government has set up an ambitious divestment target of Rs 1.75 lakh crore. LIC is going to play a crucial part in it, with the government expecting to mop up Rs 80,000-1,00,000 crore through LIC's IPO and privatisation of public sector banks. The rest is expected to come from divestment in Central Public Sector Enterprises.
Mango People at the Receiving End
The Consumer Price Index (CPI) for June has inched up to 6.26%, a tad slower than the May print of 6.20%. Despite seeing a modest hit, retail inflation remains in the RBI's mandate of the 4 per cent (+ or - 2%) range.
Food inflation remains a major concern which shot up to 5.15 per cent in June, compared with 5.01 per cent in May. And, the retail inflation trajectory in the coming months will continue to depend on how food prices playout for the year.
The spike in CPI has put immense pressure on RBI ahead of its scheduled bi-monthly meet in the August first week. Delay in monsoon has also added to the woes.
The central bank certainly finds itself in between the rock and hard place. It faces the dilemma of whether to withdraw liquidity to curb inflation or keep pushing for growth even at the expense of the rising cost of living.
5G War: Airtel Catches Up
Airtel's 5G network test trial went live in Mumbai’s Lower Parel area, achieving a speed of 1.2 Gbps with ultra-low latency. With that, Airtel surpassed its previous 5G speed of 1Gbps carried out in Gurgaon’s Cyber Hub area.
The company is going to start a similar trial in Kolkata soon. In January, Airtel had also successfully demonstrated live 5G service over a commercial network in Hyderabad.
This is the second biggest development in as many months. In June, Jio had also conducted 5G trials in Mumbai. It is also looking to start 5G trials in Delhi, Hyderabad, and Gujarat.
Airtel's success is the latest addition to India's 5G dream. TRAI is yet to hold auctions for the 5G spectrum in India. But, with every single step, these companies are taking, the path is becoming more clear for the 5G rollout shortly.
