The government is nonetheless to appoint book running lead managers and legal advisors. An embedded worth should be set, the insurance company should pare its stake in an exceedingly range of alternative listed firms and should tweak its balance sheets to fit rules, and therefore, the LIC Act should be amended in Parliament.
Financial Minister Nirmala Sitharaman, on her speech on February 1 during the discussion of her Union Budget for 2020-21, LIC was the only Company that was mentioned by the name. The government now proposes to sell a part of its holding in LIC by way of Initial Public Offer (IPO), Said by Sitharaman.
The idea of planned privatisation of India’s largest, LIC IPO and Bharat Petroleum, would be the single best transaction this year, besides many other that had been planned. All these plannings happened before the outbreak of Covid-19 Pandemic in the country which flatlined the economy on India.
Now it’s clear with the first half of the fiscal year is over, the government realises that the India’s largest insurer, LIC can no longer make its debut before 31 March 2020.
A company of LIC’s size is not just a divestment, it is a policy decision on its own. Once they comply with all the regulations of listing, it is only a matter of time. But to comply with all regulations is a long, strenuous process for a company the size and complexity of LIC, a senior government official said.
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