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The Initial Public Offer (IPO) of Life Insurance Corporation of India (LIC) moved one more step with the Cabinet Committee of Economic Affairs (CCEA) green-lighting it.
“The CCEA has given in-principle approval,” a senior government official told BusinessLIne . Although the IPO timeline is not set, it is expected to hit the market in the fourth quarter of 2020-21. Also, there is no clarity on the size of IPO, but experts expect this to be the largest ever in India. The Centre has already notified all amendments to the LIC Act, 1956 to facilitate the IPO.
Earlier this month, in an interview to BusinessLine , Finance Minister Nirmala Sitharaman had said the LIC IPO “is on course”. However, she refused to give a timeline fearing it will lead to speculation.
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The CCEA nod is the second big move for the LIC IPO. On June 19, based on decisions by SEBI, the Finance Ministry notified relaxed norms for large companies planning to enter the stock market.
LIC IPO: Government likely to invite bids from merchant bankers this month
The IPO of LIC is critical as the Government needs resources to meet its steeply stepped up spending to tackle the Covid-19 pandemic. The Centre has set a target of mopping up ₹1.75-lakh crore through disinvestment, with ₹1-lakh crore expected from sale of stake in public sector banks and financial institutions. As on date, ₹7,645.7 crore has been collected.
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