Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

Modi Govt in Talks to Launch LIC's IPO This Year: Report

The plan is to first sell a small stake in LIC through an initial public offering (IPO) and then later dilute the government’s holdings further, the report said.

Trending Desk

Updated:July 29, 2019, 9:46 AM IST
facebookTwitterskypewhatsapp
Modi Govt in Talks to Launch LIC's IPO This Year: Report
IMAGE FOR REPRESENTATION ONLY.
Loading...

The government has identified the Life Insurance Corporation (LIC) of India, country's largest insurer, as a potential candidate for divestment in the current fiscal year, according to a report in The Indian Express.

The proposal, if implemented, will give the government’s divestment programme a major boost. Nirmala Sitharaman in the Union Budget 2019 had increased the divestment target to Rs 1.05 trillion for the current fiscal year from Rs 90,000 crore in the previous year.

According to the report, the LIC divestment proposal is in the early stage and has been discussed within the government. The plan is to first sell a small stake in LIC through an initial public offering (IPO) and then later dilute the government’s holdings further, the report added.

However, the government will have to amend the LIC Act of 1956 first before launching the insurer’s IPO. The government has so far not considered listing LIC due to its perceived role in supporting the equity markets in times of major sell-offs. LIC also buys shares of state-owned companies during divestment, especially when investor participation is seen weak. LIC realised a profit of Rs 23,621 crore from its equity investment during 2018-19 as against Rs 25,646 crore in the previous year. It also made a gross equity investment of Rs 68,621 crore during 2018-19.

LIC also has huge investments in debentures and bonds (Rs 434,959 crore), besides providing funding for many infrastructure projects (Rs 376,097 crore as of March 2018), according to the insurer’s annual report for 2017-18.

Public listing of LIC will lead to more disclosures of such investments and loan portfolios and, thereby, can help in more transparency and better governance. LIC is currently under the supervisory oversight of the Insurance Regulatory and Development Authority of India (IRDAI), but it is governed by the LIC Act of 1956, which enables the insurer to obtain a special dispensation in several areas including higher stakes in companies beyond the limit set by IRDAI.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months. Use code FREEDOM.

| Edited by: Ahona Sengupta
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
20 Microns 32.95 -3.51
Hexaware Tech 381.65 1.09
Atul 3,541.05 -2.26
Amrutanjan Heal 290.20 0.80
Company Price Change %Gain
Maruti Suzuki 6,222.95 0.39
Yes Bank 65.40 -8.21
Indiabulls Hsg 482.85 -7.40
Abbott India 9,016.25 0.21
Tata Motors 112.30 -9.29

Live TV

Loading...
Countdown To Elections Results
To Assembly Elections 2018 Results