The union government has confirmed that up to 10% of the issue size of the planned initial public offering (IPO) of Life Insurance Corporation of India (LIC), the country's largest insurer, would be reserved for policyholders.
"In the Finance Bill 2021-22, it has been proposed to have a reservation on a competitive basis, to an extent of up to 10 per cent of the issue size, in favour of life insurance policyholders of LIC," Minister of State for Finance Anurag Thakur said in a written reply to a query in the Rajya Sabha.
During her Budget Speech 2021, Union Finance Minister Nirmala Sitharaman said the initial public offering (IPO) of Life Insurance Corporation (LIC) would be launched in the next financial year 2021-22.
The LIC Amendment Act has been included as part of he Finance Bill, thereby bringing the required legislative amendment for launching IPO of the country's largest life insurer.
The LIC Amendment Act has been made part of the Finance Bill, thereby bringing the required legislative amendment for launching IPO of the country's largest life insurer.
The union government owns a 100 per cent stake in LIC. Once listed, LIC is likely to become the country's biggest company by market capitalisation with an estimated valuation of ₹8-10 lakh crore.
The Department of Investment and Public Asset Management (DIPAM), which manages the government's equity in state-owned companies, has selected actuarial firm Milliman Advisors for ascertaining the embedded value of LIC. Deloitte and SBI Caps have been appointed as pre-IPO transaction advisors.
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