Govt statement on LIC IPO’s delay, says it is ‘not correct’
1 year ago
The government has denied rumours about delays in the Life Insurance Corporation’s, LIC IPO (initial public offering) and stated that the IPO will take place in the fourth quarter of the current fiscal year. With an anticipated valuation of Rs. 8-10 lakh crore, LIC is expected to become one of the largest domestic corporations by market capitalisation once it is listed.
In a tweet, DIPAM Secretary Tuhin Kanta Pandey expressed confidence that LIC’s IPO plans are on track and will take place in the January-March quarter of 2021-22.
Pandey tweeted that the plan is still on track for an IPO in the fourth quarter of this fiscal year.
“Some media speculation that the LIC IPO will not be possible this fiscal year is incorrect. The IPO is expected to take place in the fourth quarter of this fiscal year, according to the plan “The Secretary of the Treasury’s Department of Investment and Public Asset Management sent out a tweet.
In July, the Cabinet Committee for Economic Affairs (CCEA) gave its in-principle permission for LIC’s listing. For the transaction, the government has already hired ten merchant bankers.
The government amended the Life Insurance Corporation Act, 1956, earlier this year to make it easier for LIC to be listed.
According to the amendment, the federal government will own at least 75% of LIC for the first five years following the IPO, and at least 51% at all times after that. The authorised share capital of LIC will be Rs 25,000 crore divided into 2,500 crore shares of Rs 10 each, as per the amended legislation. In which Up to 10% of the LIC IPO issue would be reserved for policyholders.
Sitharaman had stated in her Budget Speech 2021 that the LIC IPO would be conducted in the fiscal year commencing April 1.