Secretary Tuhin Kant Pandey has indicated that 10 per cent quota in the proposed IPO of LIC can be reserved for policy holders of LIC.
new Delhi. According to the news, it is good news for the policy holders of Life Insurance Corporation of India (LIC). The Finance Minister in his budget speech has proposed to launch an IPO of LIC, the country’s largest insurance company. Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM) in the Union Finance Ministry, has indicated that 10 per cent quota in LIC’s proposed IPO may be reserved for LIC policyholders. According to the Secretary of the Department of Investment and Public Asset Management in the Union Finance Ministry, just as retail investors get a 10 per cent reservation in the IPO of a government company, the policyholders of LIC will also get a reservation in the IPO.
When will LIC’s IPO come
The Deepam Secretary said on Tuesday that the IPO of LIC will come after October this year. The Secretary said that the Central Government has introduced the Finance Bill in Parliament for the legislative approval necessary to start the process of selling stake in LIC and IDBI Bank. A separate bill will not come for this, as it has been included in the finance bill itself. The actuarial firm has been appointed for valuation prior to the IPO of LIC. At the same time, Deloitte and SBI Capital have been appointed as pre-IPO advisors. The government will sell only 10 per cent of its stake in LIC through an IPO. According to an estimate, the government can get more than 90 thousand crore rupees by selling 10 percent stake.
Disinvestment policy announced in the budget
Modi government is putting full emphasis on disinvestment. Finance Minister Nirmala Sitharaman has set a disinvestment target of Rs 1.75 lakh crore for 2021-22. Last year, the government has not been able to meet the disinvestment target (Rs 2.1 lakh crore) due to Corona.
Will sell stake in all companies
The Central Government has already started the exercise of selling its stake in Air India, BPCL, Shipping Corporation of India. Out of this, the first phase of getting bids in Air India has been completed, soon the government will start the next phase. At the same time, the government has also received bids for BPCL. The last date for submission of bids for Shipping Corporation of India has been fixed as 13 February 2021. According to Deepam Secretary, the share sale in BPCL and Air India will be completed by September.
LIC receives Rs 1 lakh crore premium income in pension , group plan section
Jeevan Beam Corporation of India (LIC) has received a record Rs 1 lakh crore of premium income in the first 10 months of the current financial year in its pension and group plan segment. LIC said on Tuesday that this is the first time such a huge amount has been received as premium income in any one segment of the Life Insurance Corporation. This is the second consecutive year that the segment has received good premium income.
Also Read: Good news for LIC policy holders! Can get 10 percent share of IPO
According to the company’s statement, the assets under management in this segment, which manages group plans and retired businesses, is more than Rs 7 lakh crore. Through these schemes LIC provides employee retirement fund management solutions to companies. Its market share in the new business premium in this segment is around 80 percent.
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