LIC IPO: Cabinet allows up to 20% FDI in state-owned insurer – Report | Companies News

NEW DELHI: The Coalition on Saturday allowed up to 20 per cent foreign direct investment (FDI) under the auspices of the IPO-bound LIC with the aim of facilitating the recession of the country’s largest economy, sources said. The decision in this case was made by the House of Representatives, chaired by Prime Minister Narendra Modi.

The government has approved a list of LIC shares on the stock market through the IPO through the sale-share of its share in securities and the promotion of new equity capital.

Foreign investors may want to participate in the mega IPO. However, the existing FDI policy does not regulate any specific provision for foreign investment in the LIC, which is a legal entity established under the LIC Act, 1956.

As for the current FDI policy, the foreign direct investment for private banks is 20 per cent under government approval, it has decided to accept up to 20 per cent foreign investment for LIC and the like. part of another company.

Furthermore, in order to speed up the capital-raising process, such FDI is being kept under control, as in the case of the rest of the insurance sector, one of the sources said.

Increased FDI streams will expand capital, technology transfer, technological development for accelerated economic growth and development across sectors.

Setting the stage for the nation’s largest public donation, Life Insurance Corporation on February 13 filed a memorandum of understanding with the capital market manager Sebi for a sale of 5 per cent by the government for an estimated Rs 63,000 crore.

An initial public offering (IPO) of more than 31.6 crore or 5 per cent government is likely to hit D-street in March. Employees and policy owners of insurance behemoth will receive a discount on the land charge.

According to the Red Sea prospectus (DRHP), the LIC investment value, which is the equivalent of the total shareholder share in the insurance industry, is estimated at Rs 5.4 crore as of September 30, 2021, by the company. -an international exercise. Milliman Advisors.

Although DRHP does not reflect the market value of LIC, as per industry standards it will be about three times the import value of Rs 16 lakh crore.

The public opinion of the LIC will be the largest IPO in the history of the Indian stock market. Once listed, the LIC market price will be comparable to high-end companies like RIL and TCS. Also Read: Planning to buy new smartphones? Check out the new Vivo, Oppo, Realme, Samsung phones

As a result, the amount accumulated from Paytm’s IPO in 2021 is the largest ever at Rs 18,300 crore, followed by Coal India (2010) at around Rs 15,500 crore and Power Reliance (2008) at Rs 11,700 crore. Also Read: Apple iPhone SE 3 can launch around $ 300: Report

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