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LIC IPO may hit market in Q4 of next fiscal: Economic Affairs Secretary Bajaj

At present, the federal government owns a 100 per cent stake in LIC. As soon as listed, LIC is prone to turn out to be the nation’s largest firm by market capitalisation with an estimated valuation of 8-10 lakh crore.

PTI

PUBLISHED ON FEB 03, 2021 09:32 PM IST

The preliminary public providing of LIC could hit the market within the fourth quarter of subsequent monetary 12 months, and the federal government has launched amendments to the Life Insurance coverage Company Act 1956 to facilitate this, Financial Affairs Secretary Tarun Bajaj mentioned on Wednesday.

As many as 27 amendments have been pushed by the Finance Invoice 2021 tabled by Finance Minister Nirmala Sitharaman on Monday together with the Union Price range 2021-22.

“In all probability within the third or fourth quarter of subsequent monetary 12 months, relying on how quickly the valuation comes,” he advised PTI in an interview.

On Monday, the finance minister introduced that the preliminary public supply (IPO) of Life Insurance coverage Company (LIC) will happen within the subsequent monetary 12 months.

At present, the federal government owns a 100 per cent stake in LIC. As soon as listed, LIC is prone to turn out to be the nation’s largest firm by market capitalisation with an estimated valuation of 8-10 lakh crore.

DIPAM, which manages authorities’s fairness in state-owned corporations, has already chosen actuarial agency Milliman Advisors for ascertaining the embedded worth of LIC, forward of the preliminary public supply. Whereas Deloitte and SBI Caps have been appointed as pre-IPO transaction advisors.

The federal government on Monday budgeted 1.75 lakh crore from stake sale in public sector corporations and monetary establishments, together with 2 PSU banks and one insurance coverage firm, within the subsequent fiscal 12 months starting April 1.

The quantity is decrease than the file budgeted 2.10 lakh crore to be raised from CPSE disinvestment within the present fiscal.

Nonetheless, Covid-19 pandemic impacted the federal government’s CPSE stake sale programme, and the goal has been lowered to 32,000 crore within the Revised Estimates.

To date this fiscal, the federal government has mopped up 19,499 crore from CPSE stake sale and share buyback.

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