Govt Plans to Sell Part of its LIC Stake

New Delhi, February 2, 2020:

The government of India has planned to sell a part of its stake in the country’s largest insurer and institutional investor, Life Insurance Corporation (LIC) through an initial public offering.

Finance Minister Nirmala Sitharaman said that the government has proposed to sell part of its holding in LIC and added that it would ensure a system to address the liquidity constraints of Non-Banking Financial Institutions (NBFC) and house finance corporations.

ALSO READ: Union Budget 2020: Which Goods will Cost more and which ones Less?

She also said that the government also planned to sell its stake in IDBI Bank to private investors. A divestment target of Rs 2.1 lakh crore has been set, of which, Rs 90,000 crore is expected to be raised from the sale of the government’s stake in LIC and IDBI. The remaining Rs 1.2 lakh crore is expected to come from selling the stake in central public sector undertakings (PSU) such as Bharat Petroleum and Air India.

ALSO READ: Google Announces Temporary Shutdown of its China Offices amid Coronavirus

However, although the Finance Minister announced about LIC’s stake selling by initial public offering, she refrained from disclosing the figures. According to experts, LIC could become the biggest listed firm by market capitalization.

Support Inside Northeast (InsideNE), an independent media platform that focuses on Citizen-centric stories from Northeast India that are surprising, inspiring, cinematic and emotionally relevant.