New Delhi | Jagran Business Desk: The finance Minister Nirmala Sitharaman in her budget speech on Saturday said that the government has proposed to sell a part of its holdings in LIC for fiscal management. "The govt proposes to sell a part of its stake in LIC through IPO," said Finance Minister.
She further said insurance behemoth LIC will be listed as part of the government disinvestment initiative adding the listing brings in more financial discipline among the entities.
The government proposes to sell a part of its holding in LIC through initial public offer, she said while unveiling Budget 2020-21.
Currently, the government owns the entire 100 per cent stake in Life Insurance Corporation of India (LIC).
Earlier in November, the Life Insurance Corporation of India had said that its schemes will be relaunched with lesser benefits, but their premiums would increase.
The state-owned corporation closed 23 schemes on January 31 following the guidelines of the IRDAI (Insurance Regulatory and Development Authority of India).
The proposal to list LIC is something which will be a big ticket disinvestment proposals to push revenues of the government. The current year disinvestment could not go beyond Rs 18000 crore.
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The listing of the company is going to be complicated as it has huge investments in real estate, art and equity market, which may prove to be time consuming for valuation purposes, an official said.
India's largest life insurer LIC's surplus for 2018-19 increased 9.9 per cent to Rs 532.14 billion. This was the first time that LIC's surplus crossed the 500-bln-rupee mark.
Posted By: James Kuanal