The FM thus said in her budget speech that the government now proposes to sell part of its holding in LIC, by way of an IPO
Mumbai: With an expected shortfall of Rs.85000 crore in the government’s disinvestment receipts for FY 2020, the government’s disinvestment program been a dismal failure. The government has thus set up an ambitious disinvestment receipts target of Rs.2.10 lac crores for FY 2021, of which the most critical component is expected receipts of about Rs.75000 crores from a partial sale of the government’s ownership in LIC and its listing on the stock exchanges. The FM thus said in her budget speech that the government now proposes to sell part of its holding in LIC, by way of an IPO. She said that listing of companies on stock exchanges disciplines a company unlocks its value and provides it ready access to financial markets. She said that it also gives the retail investors opportunities to participate in the wealth so created.
Before we talk about this proposed potential sale and listing of LIC, which will be the biggest IPO by any government entity so far, let’s take a quick look at what is LIC all about.
As an independent media platform, we do not take advertisements from governments and corporate houses. It is you, our readers, who have supported us on our journey to do honest and unbiased journalism. Please contribute, so that we can continue to do the same in future.
