Business

LIC IPO only after govt disinvests 3 other PSUs: Report

The mega initial public offering (IPO) of LIC will be rolled out only after the government disinvests three other PSUs. Here is all you need to know.

UPDATED: July 30, 2021, 10:44 IST

The much-awaited initial public offering (IPO) of Life Insurance Corporation (LIC) will be rolled out only after the government completes the process of disinvesting at least three other public sector units.

The National Fertilisers Ltd, Mishra Dhatu Nigam Ltd and Rashtriya Chemical and Fertilisers Ltd will be divested through an offer for sale (OFS) within the next quarter before the LIC IPO, reported The Economic Times after speaking with a senior finance ministry official.

He told the publication that LIC’s IPO will hit the markets early next year, adding that the other issues will be completed before as all necessary applications are in place. It may be noted that the LIC had got in-principle approval from the cabinet committee on economic affairs (CCEA) for the mega public issue.

As per estimates, a 10 per cent stake sale in LIC would generate approximately Rs 1 to 1.5 lakh crore. Along with the LIC IPO, the government is also working towards strategic disinvestment in companies such as Air India and BPCL.

The person quoted in the ET report said the government will disinvest a 20 per cent stake in National Fertilizers where it holds a 74 per cent stake, and it will also sell a 10 per cent stake each in Rashtriya Chemical and Fertilisers and Mishra Dhatu Nigam.

Earlier in the week, the government sold an eight per cent stake in Housing and Urban Development Corporation Ltd (Hudco) through an offer for sale. The issue was subscribed nearly 2 times by non-retail investors.

From the start of this financial year till now, the government has raised Rs 7,646 crore by selling minor stakes. Of the total amount, Rs 3,651 crore was raised from the NMDC OFS and Rs 3,9994 crore from the sale of SUUTI stake in Axis Bank.

ALSO READ- Govt may lower import duty for Tesla vehicles, but on one condition

Source-https://www.indiatoday.in/business/story/lic-ipo-only-after-govt-disinvests-3-other-psus-report-1834275-2021-07-29

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
%d bloggers like this: