LIC IPO: Government Unlikely To Reduce Its Stake In LIC For At Least 2 Years
It is unlikely that the Center will reduce its participation in the India Life Insurance Corporation (LIC) for at least 2 years after the insurer’s list, as such a decision could affect investor returns participating in the ‘initial public offer mega (IPO). The government’s position was communicated to potential investors at roads after many clerks of the Center’s plan to reduce its participation in the insurer to comply with minimum public participation standards.
To clarify, the Center argued that it would not consider any dilution on equity in the insurer for at least two years to avoid any pressure on the decline in LIC shares. Investors have been informed that the insurer had enough capital for the next two years.
The Government expected Crores of € 60,000 by selling approximately 31.6 crore or 5% participation in the life insurance company to achieve the reduced divestment objective of 78,000 crore of € 78,000 in 2021-22.
Although the government can consider a little more than the participation of 5% at the IPO LIC.
Even at a 5% dilution of stake, the introduction on the license would be the deepest in the history of the Indian stock market. Once listed, the valorization of the LIC market would be comparable to the main companies such as Reliance India Limited (RIL) and Tata Consultancy Services (TCS) The government has time until May 12 to launch the licensing introduction without filing new papers with the titles and the Board of Directors of India (SEBI).
