Committee on Economic Affairs (CCEA) has likely cleared the Life Insurance
Corporation''s (LIC) initial public offering (IPO) proposal. According to the
report, the government intends to float LIC on stock exchanges by March of
ministerial panel will decide on the finer points, such as pricing and the
amount of stake to be divested by the government. In May, the Cabinet approved
the strategic sale of the government''s and Life Insurance Corporation''s (LIC)
whole stakes in IDBI Bank Ltd.
As part of
the ambitious Rs 1.75 lakh crore disinvestment strategy, Finance Minister
Nirmala Sitharaman announced in her Budget Speech 2021 that the LIC Initial
Public Offer (IPO) would be launched in 2021-22.
to a PTI report released ahead of the IPO, LIC''s stake in IDBI Bank would be
sold along with the government''s stake in the lender''s disinvestment, but the
actual amount of stake dilution has still to be determined, according to the
Department of Investment and Public Asset Management (DIPAM).
More than 94
percent equity of IDBI Bank is owned by the central government and the
Life Insurance Corporation of India (LIC). LIC owns 49.24 percent stake in the
company, while the government of India owns 45.48 percent. 5.29 percent
of shares are held by non-promoters.
In May, the
Cabinet approved the strategic sale of the government''s and Life Insurance
Corporation''s (LIC) whole stakes in IDBI Bank Ltd.
current fiscal year, the government hopes to raise Rs 1.75 lakh crore from
minority stake sales and privatization.
crore will come through the sale of government stakes in public sector banks
and financial institutions, while the remaining Rs 75,000 crore will come from
Central Public Sector Enterprises (CPSE) disinvestment proceeds.
The sale of
government holdings in public sector banks and financial institutions will
generate Rs 1 lakh crore, with the remaining Rs 75,000 crore coming from CPSE
Amendment Act was incorporated into the Finance Act, opening the way for the
initial public offering. As pre-IPO consultants, Deloitte and SBI Capital have
been appointed by the Centre.