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HomeBusinessThe Much Awaited LIC Public Offer May Arrive This Fiscal: 10 Points

The Much Awaited LIC Public Offer May Arrive This Fiscal: 10 Points

The a lot awaited LIC IPO is more likely to happen through the present fiscal

Woefully wanting its disinvestment goal for the present fiscal (2021-22), which is a humungous Rs 1.75 lakh crore, authorities is eager to push the countrys greatest ever public providing of Life Insurance coverage Company of India (LIC), by way of which it’s seeking to elevate something between Rs 50,000 crore to Rs 90,000 crore, as per the preliminary public provide (IPO) dimension.

Allow us to take a look at what all has occurred round this key growth within the latest previous.

  1. As per numerous media stories, the state-run insurer is more likely to file its draft papers for the IPO within the final week of this month.

  2. Based on Bloomberg, the draft prospectus will present the embedded worth of LIC in addition to the variety of shares on provide.

  3. The valuation of LIC is estimated to be round Rs 15 lakh crore, whereas the embedded worth of insurer is more likely to be greater than Rs 4 lakh crore, the Bloomberg report mentioned additional.

  4. The federal government is pinning its hopes of assembly its big disinvestment goal for the present fiscal from the LIC IPO, as until now it has managed to lift simply Rs 9,240 crore.

  5. The commerce and trade ministry is making modifications within the overseas direct funding (FDI) coverage to facilitate disinvestment of LIC, after taking views from the finance ministry, secretary within the division for promotion of trade and inside commerce (DPIIT), Anurag Jain had mentioned final week.

  6. Mr Jain had additional mentioned that the present FDI coverage associated to the sector won’t facilitate the disinvestment means of LIC and, therefore, must be revised.

  7. The matter is being mentioned with the Division of Monetary Providers and Division of Funding and Public Asset Administration (DIPAM), the senior official had knowledgeable.

  8. “We now have had two rounds of discussions at my stage and now, we now have (DPIIT, division of economic providers and DIPAM) come on the identical web page. So, we’re within the means of drafting these modifications within the FDI coverage. We’ll go to the Cupboard (for approval),” he was quoted as saying by PTI.

  9. Based on the present FDI coverage, 74 per cent overseas funding is permitted underneath the automated route within the insurance coverage sector. Nonetheless, these guidelines don’t apply to the Life Insurance coverage Company of India (LIC), which is run by way of a separate LIC Act.

  10. As per SEBI guidelines, each FPI and FDI are permitted underneath public provide. Nonetheless, sources mentioned that for the reason that LIC Act has no provision for overseas investments, there’s a must align the proposed LIC IPO with Sebi norms relating to overseas investor participation, PTI reported.

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