Amid Speculation Over LIC IPO's Delay, Government Says It Is On Course - EPrajatantra

 

Amid Speculation Over LIC IPO's Delay, Government Says It Is On Course

The government will sell part of the Life Insurance Company before March 2022. The IPO is taking more work than expected, and the government needs to figure out how to do it.

It was in the news yesterday that we’re trying to sell a company that we own called Life Insurance Corporation of India, or LIC. I’m trying to make it clear that this is in the works, so don’t worry about it.

There are still some issues to address with the valuation of LIC, a senior official of one of the merchant bankers said. So even though the appraiser said a home is worth a lot of money, the government still needs to verify that the home is worth it before it can be sold for that much.

It is common for companies who want to sell shares in India to hire expert people to review their financial information before they can sell their shares.

Because the country that makes rules for public companies (called SEBI which stands for Securities and Exchange Board of India) has been without a leader for 7 months, one of its top jobs at an organization called IRDAI (Insurance Regulatory and Development Authority of India) is also empty.

The government is planning to sell shares in one of its most important insurance companies. The plan is to sell the shares by March 2021. It says that the company will go public by the end of this fiscal year.

The government is trying to sell its shares in LIC to bring money into the country. Its shares are complicated, so they don’t know how much their share sale will be worth. If it brings a lot of money, then the government will sell more shares.

A government official said it will be hard to meet their because there are so many regulations.

The government wants a company called Life Insurance Corporation of India (LIC) to sell shares. And they want a company called Bharat Corporation Limited (BPCL) to sell part of the company to a different company. It will help them get rid of bad investments and make a lot of money for the government.

Speaking about the government, Finance Minister Nirmala Sitharaman said they are doing very well. The bureaucracy makes it hard for people to get things done because it takes up a lot of time. We’re trying to speed that up for people by using technology.

The government has already approved the plan for a company called Life Insurance Corporation of India to be listed on the stock exchange. The government has tried to make it easier for people to buy LIC policies.

The government must hold at least 75% of LIC shares for five years after the IPO. That’s five years from now. After that, they can own as little as 51%. The government owns some of LIC’s shares now and they want to own more.

LIC is a company that will sell its own shares to the public. It will sell 2,500 ten-rupee shares for every one crore rupees. The government of India agreed to let LIC do this. Up to 10% of the shares will be owned by people who already have insurance from LIC.

Ms. Sitharaman said that this year, we’re going to sell part of our government insurance company so it can be owned by everyone.

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