LIC IPO Date 2021: Govt Likely to Reserve 10% of LIC IPO for Policyholders


New Delhi: The government is planning to reserve 10 per cent of the planned Initial Public Offering (IPO) for policyholders of Life Insurance Corporation (LIC) in the public issue. As per a report, over 1 crore new Demat accounts will also be opened before the launch of the IPO. Also Read – Brookfield’s REIT IPO Hits Capital Markets Today, Raises Rs 1,700 crore From Anchor Investors: Here’s All You Need to Know

During an interview with the Times of India, a day after the Union Budget 2021-22, Tuhin Kanta Pandey, the Secretary of the Department of Investment and Public Asset Management, or DIPAM, said, “For LIC IPO, we have put it in the Act that we will offer something to the policyholders. We are telling the policyholders to become shareholders. Up to 10% can be offered to policyholders.” Also Read – Stove Kraft IPO Allotment Status: Here’s How You Can Check Share Allotment Status Directly

Earlier on Monday, Finance Minister Nirmala Sitharaman had announced during her Budget 2021 speech that the LIC IPO will be brought in fiscal year 2022. Also Read – IRFC IPO Share Allotment Status: Share Price Listing to Happen Today, Here’s How to Check Application Status Via Registrar, BSE Website

Economic Affairs Secretary Tarun Bajaj said, the LIC IPO may hit the market in the fourth quarter of next financial year, and the government has introduced amendments to the Life Insurance Corporation Act 1956 to facilitate this. As many as 27 amendments have been pushed through the Finance Bill 2021 tabled by the finance minister along with the Union Budget.

Bajaj said, “Probably in the third or fourth quarter of next financial year, depending on how soon the valuation comes.”

Currently, the government owns a 100 per cent stake in LIC. Once listed, LIC is likely to become the country’s biggest company by market capitalisation with an estimated valuation of Rs 8-10 lakh crore.

DIPAM, which manages government’s equity in state-owned companies, has already selected actuarial firm Milliman Advisors for ascertaining the embedded value of LIC, ahead of the initial public offer. While Deloitte and SBI Caps have been appointed as pre-IPO transaction advisors.

The government on Monday budgeted Rs 1.75 lakh crore from stake sale in public sector companies and financial institutions, including 2 PSU banks and one insurance company, in the next fiscal year beginning April 1.

The amount is lower than the record budgeted Rs 2.10 lakh crore to be raised from CPSE disinvestment in the current fiscal.

However, COVID-19 pandemic impacted the government’s CPSE stake sale programme, and the target has been lowered to Rs 32,000 crore in the Revised Estimates.

So far this fiscal, the government has mopped up Rs 19,499 crore from CPSE stake sale and share buyback.


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