The Indian Government to sell a 25% stake in LIC
2 min read
India is planning to seek the cabinet’s approval to sell a 25% stake in the nation’s largest life insurer, LIC Currently, the Gov holds a 100% stake in the life insurer!
The Narendra Modi Government is hoping that the LIC IPO will help plug a burgeoning budgetary gap. A stake sale in LIC through a public offering of shares will help the Gov bolster its #finances after the coronavirus pandemic stalled growth & threatens the fiscal deficit target of 3.5% of GDP set for the year ending March 2021
Earlier this year, FM Nirmala Sitharaman had announced in her budget speech that the government would divest its #stake in LIC through an #IPO. The administration has raised about Rs 57 billion through asset sales in the fiscal year from April 1, as against a target of Rs 2.1 trillion
The Gov has picked Deloitte & SBI Capital Markets to help LIC prepare for an initial share sale. It will also move an amendment in parliament for an authorized capital of Rs 200B which will be divided into 20B shares The IPO which values LIC between Rs 8L Cr to Rs 10L Cr, is likely to fetch the government over Rs 1 lakh Cr!
Do you think LIC will join the bandwagon of Reliance Industries Limited, Tata Consultancy Services & HDFC Bank in terms of Mcap in the near future with its listing?
