LIC expected to offer share sale: The much-awaited initial sale of shares of Life Insurance Corporation of India (LIC) is expected in the current financial year and the process is moving in that direction. In the third or last week of the current month, DRHP Corporation is likely to submit a draft proposal for open share sale to the Securities and Exchange Board of India (SEBI).
LIC expected to offer share sale
According to sources, LIC officials have indicated the date of possible share sale to global investors. He also told the Finance Ministry officials that preparations were on to list the shares of LIC in the capital market before the end of the current financial year i.e. March.
Largest Indian investor
The launch of capital markets by the largest Indian investor will be a memorable event not only for 2022 but also in history, with LIC raising around Rs 1 lakh crore from the proposed sale.
Raising revenue of Rs 1.75 lakh crore through disinvestment
In the current financial year, if the central government is to achieve its budget target of raising revenue of Rs 1.75 lakh crore through disinvestment, it is imperative that some of the state-owned shares in LIC be sold through an open initial public offering [ IPO ]. Go.
Process of privatization of public sector companies
The process of privatization of public sector companies, which has been stalled for some time due to the effect of the second wave of Corona, is unlikely to be fully successful due to Omicron’s concerns.
The government is planning to seek letters of intent from potential investors in the last quarter of January-March 2022 regarding the privatization of six PSUs, including Bharat Petroleum, BEML and Shipping Corporation.
Privatization of two state-owned banks
As proposed in the budget, privatization of two state-owned banks and one general insurance company is unlikely this year, and certainly has been delayed.