The Centre refuted media speculation around the initial public offer (IPO) of Life Insurance Corporation (LIC) and said that it is unlikely to come up with the IPO of LIC in the current financial year ending March 2022.
"Some media speculation doubting the feasibility of LIC IPO this fiscal year is not correct. It is reiterated that plan is on course for the IPO in the last quarter of this fiscal," Secretary of Department of Investment and Public Asset Management tweeted.
The government is banking on the listing of LIC IPO and BPCL strategic sales for meeting its disinvestment. Recently, speaking about disinvestment, Finance Minister Nirmala Sitharaman had said the government is progressing well.
In her Budget Speech 2021, Sitharaman had said the IPO of LIC would be launched in the financial year beginning April 1. Currently, the government owns 100 per cent stake in LIC.
The authorised share capital of LIC shall be Rs 25,000 crore divided into 2,500 crore shares of Rs 10 each, as per the amended legislation. Up to 10 per cent of the LIC IPO issue size would be reserved for policyholders.
Once listed, LIC is likely to become one of the biggest domestic companies by market capitalisation with an estimated valuation of Rs 8-10 lakh crore.
The Department of Investment and Public Asset Management (DIPAM), which manages the government's equity in state-owned companies, has selected actuarial firm Milliman Advisors for ascertaining the embedded value of LIC for meeting the government's disinvestment target
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