Government of India plans to sell its 25% stake in LIC to the General Public Bidders

India is on its way to seek cabinet’s permission to sell a 25% stake in the nation’s largest life insurer, LIC, as Prime Minister Narendra Modi is attempting to find resources to plug a widening gap.

India is on its way to seek cabinet’s permission to sell a 25% stake in the nation’s largest life insurer, LIC, as Prime Minister Narendra Modi is attempting to find resources to plug a widening gap.

The government is planning to amend the act of parliament in which the state-run Life Insurance Corp. of India was organized to prepare for sale, the people with knowledge of the matter said. They further added that the timing of the insurer’s initial public offering will totally be based on market conditions and the sale has to be completed in tranches. It’ll help the government strengthen its finances after the Coronavirus pandemic slowed down the growth. The administration has raised about Rs 5,700 crore through asset sales.

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Bloomberg News reported, “The government has picked Deloitte Touche Tohmatsu India Ltd. to help Life Insurance Corp. of India prepare for an initial share sale. The advisers will evaluate the capital structure of India’s biggest insurer as well as aid the company in reassessing its financial statement.” The People also said that the government will also move an amendment in parliament for an authorized capital of Rs 20,000 crore which will be divided into 20 billion shares.