Union Budget 2021: Government to disinvest a part of LIC through IPO launch
Finance Minister while introducing the Union Budget 2021-22 declared that the government plans to sell part of its holding in Life Insurance Corporation of India through an initial public offering in the coming year.
This will be an amendment to the existing Act to facilitate the public offer, said FM Nirmala Sitharaman. She further announced infusion of Rs 20,000 crore for public sector banks.
Finance Minister Nirmala Sitharaman has begun presenting the Union Budget 2021-22 in Parliament. This years budget proposal rest on six pillars Health and Well-Being, Physical and Financial capital and infrastructure, Inclusive Development for Aspirational India, Reinvigorating Human Capital, Innovation and R&D, Minimum Govt, Maximum Governance, said Finance Minister.
Established in 1956, the state owned life insurer and investor is also the largest in the country. It has headquarter located in Mumbai and branches spread across different locations in India. With the LIC IPO launch it is expected that because of the sheer size of the LIC corporation this will be the biggest IPO launch in India.
In 2019, LIC’s investment volume stood at Rs 29.84 lakh crore, including investments in debt and equity. LIC is the country’s largest insurer with 68.9% market share in the new business premium collection and 60.9% in annual premium collection.