InvestorQ : When is the LIC IPO likely to happen in India?
swati Bakhda made post

When is the LIC IPO likely to happen in India?

Sam Eswaran answered.
2 years ago

After originally planning to sell 10% in LIC, it looks like the Indian government may end up selling up to 25% in LIC via the IPO route. However, this may be sold in tranches considering that the appetite for that size would be limited in the Indian market conditions.

The government is desperate to boost revenues with the fiscal deficit likely to rise from 3.5% to closer to 8%. A large stake sale in LIC through a public offering will help the government bolster its finances; in the aftermath of the pandemic.

The divestment revenues for this fiscal have been less than Rs.6000 crore against the full year divestment target of Rs.210,000 crore. LIC and BPCL were the big case studies for the government, apart from the strategic sale of Air India.

The government will also move an amendment in parliament to structure the authorized capital of LIC at Rs.20,000 crore which will be divided into 20 billion shares of Rs.10 each. The government expects the unlock the value of LIC and also meet its divestment targets.