The federal government is fastidiously evaluating the follow-on public providing (FPO) of Life Insurance coverage Company (LIC) and is eager on having the “best individuals” to execute the stake sale, a senior finance ministry official advised Enterprise Right this moment TV.
The official described the most recent transfer to empanel service provider bankers and authorized advisers for minority stake gross sales in LIC and public sector banks (PSBs) as “firm steps in the best path.” Nevertheless, he added that the timing of LIC’s stake sale can be determined based mostly on “the best market circumstances.”
Dipam, the Division of Funding and Public Asset Administration, has invited bids from monetary and authorized advisers for a three-year empanelment to help with stake gross sales in LIC and choose PSBs. The Centre is prone to promote a small stake in LIC to assist meet the minimal public shareholding (MPS) norms set by SEBI.
Presently, LIC has a public float of simply 3.5%, far under the ten% minimal required for listed companies inside two years of itemizing. SEBI has prolonged the deadline till Could 2027, giving the federal government extra time to strategise its divestment.
Presently holding a 96.5 per cent stake in LIC, Sources point out that an extra 3-5% stake sale in LIC could possibly be step one in 2025-2026.
In Could 2022, the federal government raised Rs 21,000 crore by way of LIC’s preliminary public providing (IPO), the most important in India’s major markets historical past. This IPO was solely an offer-for-sale by the federal government, involving 221,374,920 fairness shares of Rs 10 every, priced at Rs 949 per share, representing 3.5 per cent of LIC’s paid-up capital
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