Budget 2020-21: Just as Saudi Arabia’s Aramco completed the largest public offering in the world’s history, the largest insurer in the country LIC IPO may create a similar buzz in India.
Budget 2020 India: LIC IPO: Just as Saudi Arabia’s Aramco completed the largest public offering in the world’s history, the largest insurer in the country LIC IPO may create a similar buzz in India. The government plans to raise funds by the IPO of LIC, Finance Minister Nirmala Sitharaman on Saturday said. “Government to sell a part of its holdings in LIC. A big disinvestment move and spells out the future road map to generate funds from alternate means and less dependency on taxes only”, Nitin Narang, Director – Nangia Andersen Consulting, said.
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As against Rs 1.05 lakh crore target for the ongoing financial year, the government set a divestment target of Rs 2.1 lakh crore for FY21. So far this year, the government has divested Rs 18,094.59 crore. “LIC has been used in the past as a sovereign fund to support market sentiments in the past. With it’s disinvestment, such direct involvement of the Government in the market, will get truncated”, Vishwas Panjiar, Partner Nangia Andersen LLP, said.
Source: Financial Express
