The Cabinet Committee on Economic Affairs (CCEA) has likely cleared the initial public offer (IPO) plan for Life Insurance Corporation (LIC), sources told CNBC TV18. The government plans to list LIC on bourses by March of FY22, the report said.
"The ministerial panel is set to decide on finer details, including pricing and the quantum of stake to be divested by the Centre," sources were cited as having said in Moneycontrol.
The Cabinet in May had approved the strategic sale of the entire stake of the government and Life Insurance Corporation (LIC) in IDBI Bank Ltd.
In her Budget Speech 2021, Finance Minister Nirmala Sitharaman said the Initial Public Offer (IPO) of LIC would be floated in 2021-22 as part of the ambitious Rs 1.75 lakh crore disinvestment target.
Ahead of its IPO, a PTI report said LIC's holding in IDBI Bank would be sold along with the government''s stake in the lender's disinvestment, but the exact quantum of stake dilution is yet to be decided, the Department of Investment and Public Asset Management (DIPAM) has said.
The central government and LIC together own more than 94 percent equity of IDBI Bank. LIC, currently having management control, has 49.24 per cent stake, while the Government of India holds 45.48 per cent. Non-promoter shareholding stands at 5.29 per cent.
The Cabinet in May had approved the strategic sale of the entire stake of the government and Life Insurance Corporation (LIC) in IDBI Bank Ltd.
The government aims to mop up Rs 1.75 lakh crore in the current fiscal from minority stake sale and privatisation.
Of the Rs 1.75 lakh crore, Rs 1 lakh crore is to come from selling government stake in public sector banks and financial institutions, while Rs 75,000 crore would come as CPSE disinvestment receipts.
The government is likely to invite bids from merchant bankers later in July for the initial public offer of the state-owned insurance giant Life Insurance Corporation (LIC) as part of its disinvestment push, according to PTI. Upto 10 percent of LIC IPO would be reserve for policyholders.
T he LIC Amendment Act was made part of the Finance Act, paving the path for the IPO. Deloitte and SBI Caps have been appointed as pre-IPO transaction advisors.
