What are the next steps to the LIC disinvestment and how soon could this happen now?

DIPAM has issued request for proposal or RFP inviting advisors for partial disinvestment of the government’s stake in LIC through the IPO route. The broad mandate will include advising on the necessary amendments needed to the LIC Act as well as the pricing, timing and the modus operandi of the IPO.

Indian government currently holds 95% stake in LIC and the last date for submission of bids has been fixed as 13 July, which will be opened on 14 July. LIC already commands a 69% market share and registered a sharp growth in premium collections. This divestment was part of the Union Budget promise made by the Finance Minister.