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LIC IPO Latest News: FM Nirmala Sitharaman reviews progress - Crucial for Rs 1.75-lakh crore disinvestment target
Finance Minister Nirmala Sitharaman has taken a review meeting on the IPO of state-run insurer LIC. The meeting was attended by DIPAM Secretary Tuhin Kant Pandey along with senior officials of Ministry of Finance and the LIC
Finance Minister Nirmala Sitharaman has taken a review meeting on the Initial Public Offering (IPO) of Life Insurance Corporation of India (LIC IPO). The meeting was attended by Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kant Pandey along with senior officials of Ministry of Finance and the state-run insurer.
The officials who attended the meeting via the video conferencing updated the union Finance Minister on the progress of the issue. The government intends to complete the IPO of India’s largest life insurer as soon as possible.
The IPO of Life Insurance Corporation is being touted as the biggest ever in the country's history and is expected to hit the markets by March, a PTI report said.
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"Union Finance Minister Smt. @nsitharaman reviewed progress of the LIC IPO in New Delhi today in presence of @SecyDIPAM; Secretary @DFS_India and Senior Officials @LICIndiaForever and @FinMinIndia via VC," the finance ministry tweeted.
See Tweet Here:
Union Finance Minister Smt. @nsitharaman reviewed progress of the LIC IPO in New Delhi today in presence of @SecyDIPAM; Secretary @DFS_India and Senior Officials @LICIndiaForever and @FinMinIndia via VC. pic.twitter.com/UvQjKkuv3a
— Ministry of Finance (@FinMinIndia) January 7, 2022
LIC IPO is crucial for meeting the Rs 1.75-lakh crore disinvestment target set for current fiscal (April-March). So far this fiscal, Rs 9,330 crore has been mopped up through PSU disinvestment.
In September last year, the government appointed 10 merchant bankers, including Goldman Sachs (India) Securities Pvt Ltd, Citigroup Global Markets India Pvt Ltd and Nomura Financial Advisory and Securities (India) Pvt Ltd to manage the mega IPO of the country's largest insurer LIC.
Other selected bankers include SBI Capital Market Ltd, JM Financial Ltd, Axis Capital Ltd, BofA Securities, J.P. Morgan India Pvt Ltd, ICICI Securities Ltd, and Kotak Mahindra Capital Co Ltd.
Cyril Amarchand Mangaldas has been appointed as legal advisor for the IPO.
The government is in the process of deciding the quantum of government stake that will be divested through the IPO.
The government is also mulling to allow foreign investors to pick up stakes in LIC. As per Sebi rules, foreign portfolio investors (FPI) are permitted to buy shares in a public offer. However, since the LIC Act has no provision for foreign investments, there is a need to align the proposed LIC IPO with Sebi norms regarding foreign investor participation.
The Cabinet Committee on Economic Affairs had in July last year cleared the disinvestment of LIC.
Inputs from PTI
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