LIC IPO: The Central Government has recently denied the claims of the Initial Public Offering (IPO) of Life Insurance Corporation of India. The Center had a day earlier dismissed media speculations, claiming that the government is unlikely to come out with an IPO of Life Insurance Corporation (LIC) in the current financial year ending March 2022. The secretary of the Department of Investment and Public Asset Management said in a tweet that the plan was “definitely underway”, refuting these media claims, adding that the report was not accurate. The government’s reaction comes a day after such a report was published in the media.
“Some media speculations casting doubt on the viability of LIC IPO in this financial year is not correct. In a tweet on Sunday, Secretary, Department of Investment and Public Asset Management (DIPAM) said, it is reiterated that the plan is ready for IPO in the last quarter of the current financial year.
Some of the media speculations doubting the viability of LIC IPO in this financial year are not true. It is reiterated that the IPO plan is ready in the last quarter of the current financial year. pic.twitter.com/E01nDZjnSu— Secretary, DIPAM (@SecyDIPAM) December 19, 2021
On 19 December, a media report suggested that the government is unlikely to come out with an LIC IPO by the end of the current financial year. The report suggested that the valuation of the state-owned giant is taking longer than anticipated, and the preparatory work is still not complete.
“There are still some issues that need to be addressed with regard to valuation of LIC,” the report quoted a senior official of a merchant banker as saying on Saturday.
The official said the initial public offering (IPO) needs to be reviewed not only by the Securities and Exchange Board of India (SEBI) but also the Insurance Regulatory and Development Authority of India (Irdai), which has been headless for almost seven months. Report.
Given the number of regulatory processes, the official said meeting the deadline for the fourth quarter of the current fiscal would be difficult by any stretch of the imagination, the media report said.
However, the government has claimed that the work is on and speculations about the viability of LIC IPO are wrong.
The Cabinet Committee on Economic Affairs (CCEA) in July gave in-principle approval for listing of LIC. The government has already appointed 10 merchant bankers for the transactions.
Earlier this year, the government made about 27 amendments to the Life Insurance Corporation Act, 1956 to ease the listing of LIC.
As per the amendment, the central government will hold at least 75 per cent stake in LIC for the first five years after the IPO, and subsequently at least 51 per cent at all times after five years of listing.
(with PTI inputs)
read all breaking news, today’s fresh news And coronavirus news Here.
,