DIPAM has condemned the media reports on LIC’s IPO that it’s not likely to be in time and to be out by next year. DIPAM stated that the IPO is expected to be out by the last quarter of this fiscal year. The process for the release is in process, as IPO requires not only SEBI’s (Securities and Exchange Board of India) but also the IRDAI’s (Insurance Regulatory and Development Authority of India) nod. This process will take quite a several months due to the product mix, assets, profitability structure, etc but will probably be out on time.
“The tying up of loose ends among the bureaucracy and different departments consumes its own time and that is what we are trying to speed up,” Finance Minister Nirmala Sitharaman said. DIPAM has kept all such factors in mind while releasing its expected date.
The in-principle approval for the listing of LIC was given in July by The Cabinet Committee on Economic Affairs (CCEA). Hence the government has already appointed 10 merchant bankers for the transaction and in order to facilitate the listing of LIC, the government earlier this year made about 27 amendments to the Life Insurance Corporation Act, 1956.
Some media speculation doubting the feasibility of LIC IPO this fiscal year is not correct. It is reiterated that plan is on course for the IPO in the last quarter of this fiscal. pic.twitter.com/E01nDZjnSu
— Secretary, DIPAM (@SecyDIPAM) December 19, 2021