In Budget 2021, it has been announced that the government is going to bring the IPO of LIC. There is a lot of speculation on when the IPO will come, but before this, Minister of State for Finance Anurag Thakur has informed in Parliament that when the IPO comes, the policyholders will get 10 percent reservation.
Delhi: The Finance Minister has announced during the budget speech that the government is going to bring the IPO of Life Insurance Corporation soon to fulfill the target of disinvestment. The Modi government had also announced this matter last year but due to Corona, the process could not be completed.
What does LIC IPO mean
Like last year, Finance Minister Nirmala Sitharaman has mentioned the IPO of LIC in the budget speech this year. This will mean that the government will list LIC in the stock market and will find out the economic value of the company through an IPO. In last year’s budget speech, Finance Minister Nirmala Sitharaman had said that ‘LIC will continue to be fully owned by the government. After the listing, the economic status of the company will be ascertained through IPO and this will be done because the government wants to make retail investors also its share.
Golden opportunity for policy holders
Minister of State for Finance Anurag Thakur has informed in Parliament that when LIC’s IPO comes in the market, the policyholders will get 10 percent reservation in it. This will mean that policyholders who want to invest in the market will get a chance to buy a stake in LIC. If you have a Life Insurance Corporation of India (LIC) policy, then you will have a reserve quota in its IPO.
LIC has 32 crore policy
Explain that LIC has a total of 32 crore policies, whose assets are close to Rs 31 lakh crore. The economic status of LIC is expected to be around 10-12 lakh crores. On this basis, if the company sells 10% stake, then it can raise close to one lakh crore rupees from it. In such a situation, its policy holders will get a share of 10 thousand crores in the reserve quota.
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Target to raise 1.75 lakh crore
The government has set a target of raising a total of Rs 1.75 lakh crore through disinvestment in the budget 2021-22. This money will be raised by selling stake in government companies. However, in this financial year, instead of Rs. 2.10 lakh crore, 20 thousand crore rupees have not been collected so far, the government has changed this estimate in the budget to 32 thousand crore rupees.
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