Finance Minister Nirmala Sitharaman Reviews LIC IPO Progress; Key things we know so far
LIC IPO Update: The initial public offering, or IPO, of the Life Insurance Corporation (LIC) of India is expected to be launched very soon. The operations for these are in full swing and we can only wait for the insurer to announce the opening date of the IPO. Amid all the paperwork and other processes regarding the LIC IPO, Finance Minister Nirmala Sitharaman reviews its progress. LIC’s IPO, billed as the largest in the country’s history, is expected to hit markets by March, the government said. However, the exact date or price range of the issue has yet to be announced by the government.
Here are the most important things we know so far about LIC’s IPO which is slated to launch in March of this year:
– The Union Minister of Finance reviewed on Friday the progress of the planned divestment of the country’s largest insurer, LIC. Union Finance Minister Smt. @Nsitharaman reviewed the progress of LIC’s IPO in New Delhi today in the presence of @SecyDIPAM; Secretary @DFS_India and senior officials @LICIndiaForever and @FinMinIndia via VC, “the finance ministry tweeted.
– LIC’s IPO is expected to file its draft documents with the Sebi by the third week of January, according to a Times of India report. This is in line with the government’s claims to launch the IPO by the end of fiscal 2022. The IPO of LIC is crucial to achieving the divestment target of Rs 1.75 crore set for the current year (April-March). So far this fiscal year, Rs 9,330 crore has been wiped out by the divestment of PSUs. The government is in the process of deciding how much of the government stake will be sold through the IPO.
– LIC shares will be provided at a reduced price to policyholders, the company said. He also urged policyholders to open a mat account and link Aadhaar to LIC in order to purchase shares during the public offering, part of which will be reserved exclusively for them. In a notification dated December 2, the insurance company said: âIn order to participate in such a public offering, policyholders will need to ensure that their PAN details are updated on company records. In addition, it is possible to subscribe to any public offering in India if you have a valid Demat account. Accordingly, policyholders should ensure that they have a valid mat account.
– The central government has refuted the allegations regarding the IPO of LIC. The Center last month dismissed media speculation that the government is unlikely to propose the IPO of LIC in the current fiscal year ending in March 2022. The Department’s secretary investment and public asset management said in a tweet that the plan was underway. of course, and said the reports were not correct.
– The government has selected Cyril Amarchand Mangaldas as legal advisor for LIC’s next mega-IPO. In addition to the legal advisor, the government has appointed 10 major global and Indian investment banks to manage the initial public offering of India’s Life Insurance Corporation (LIC). She also selected Concept Communications as advertising agency and Kfintech as registrar and share transfer agent for the IPO. The Department of Investment and Public Asset Management said it has appointed Goldman Sachs, JP Morgan, Citigroup, Nomura, Bank of America Securities, JM Financial, SBI Caps, Kotak Mahindra Capital, ICICI Securities and Axis Capital to manage the ‘Initial Public Offering.
(With PTI inputs)
Read all the latest news, breaking news and news on the coronavirus here.