The Government Of India Will Sell Its Stake In LIC In Two Phases

The Government Of India Will Sell Its Stake In LIC In Two Phases

The Government of India has decided that it will not be able to sell 10 per cent stake in Life Insurance Corporation of India (LIC) through Initial Public Offering (IPO), but prefers to sell 5 or 6%, followed by another public offering. Will be offered. The cost will be around Rs 12-15 trillion. Selling a 10 per cent stake would mean the amount ranges from about Rs 1.2 lakh crore to Rs 1.5 lakh crore.

Zomato's IPO:

Zomato's IPO at Rs 79,375 crore shows that the public market can absorb a large share of sales. Zomato's IPO was subscribed almost 40 times.

Government Disinvestment Target:

In the budget for the year 2021-22, a target of Rs 1.75 lakh crore has been set for disinvestment. By selling government stakes in various financial institutions and public sector banks, including LIC, Rs. A target of 1 trillion can be set. The balance will be raised through disinvestment of government shares in various public sector companies such as Air India, Bharat Petroleum Corp. Ltd. etc.

New Listing Standards of Securities And Exchange Board of India (SEBI):

The new listing criteria of the Securities and Exchange Board of India (SEBI) states that companies with a size of more than Rs 1 trillion from the date of listing will have to acquire at least 10 per cent public share in two years and 25 per cent public shareholding in five years.

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