New Delhi:The government is expected to launch the initial public offering (IPO) of the country’s largest insurer Life Insurance Corporation (LIC) in the fourth quarter (Q4) of the ongoing financial year (FY22).The listing of LIC will be crucial for the government to meet its disinvestment target.
The government aims to mop up Rs 1.75 lakh crore in the current fiscal from minority stake sale and privatisation.Of the Rs 1.75 lakh crore, Rs 1 lakh crore is to come from selling the government’s stakes in public sector banks and financial institutions.
The remaining Rs 75,000 crore would come as CPSE disinvestment receipts.The Cabinet had earlier this year in July cleared the disinvestment of LIC and a panel headed by the finance minister has been authorised to decide on the quantum of stake dilution. The government has already brought in required legislative amendments in the LIC Act for the proposed IPO through the Finance Act 2022. In her Budget speech in February this year, Finance Minister NirmalaSitharaman said the IPO of LIC would be floated in 2021-22.
Now, as per the proposed plan by the government, up to 10 per cent of the LIC IPO issue size would be reserved for its policyholders. Last week, the life insurer asked its policyholders to update their PAN, so that they can participate in the proposed public offer.“In order to participate in any such public offering, policyholders will need to ensure that their PAN details are updated in the Corporation’s records.
Further subscribing to any public offering in India is only possible if you have a valid DEMAT account,” LIC had said in a public notice.So, if you are an existing LIC policyholder and you want to invest in the upcoming LIC IPO, then you’ll need a Demat account and additionally, you must update your PAN details on your policy records.
