Preparations for Government's disinvestment in LIC underway, could be completed in a year.
Yes to Divest
In Saturday's Budget Speech, Finance Minister Nirmala Sitharaman proposed to divest a part of the government's stake in Life Insurance Corporation of India (LIC) through an IPO. Preparations for the share sale of the state-owned entity, which has $434bn in total assets, are already underway and it is expected to be completed in a year's time.
Let's Get This Started
To oversee the stake sale in the country's largest insurer, an inter-ministerial committee will be set up comprising officials from the Department of Investment and Public Asset Management (DIPAM), Department of Financial Services and Law Ministry.
“It will take at least a year," Finance Secretary Rajiv Kumar told reporters. “There are too many processes such as finding out the valuation, (looking at) SEBI regulations, changes in the LIC Act. We will start work with DIPAM on this." Livemint
The Government's plan to sell part of its stake in LIC may take investors' focus away from insurers already listed in the stock market. Read this article to know more.
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