Govt. to sell stakes in LIC in two stages
The government has decided that it might not sell 10% stake in Life Insurance Corp. of India through an initial public offering but instead choosing instead to sell 5 or 6% which will be followed by a second public offering.
- LIC is yet to be concluded but it is estimated that the value will be around Rs 12-15 trillion.
- Sell of 10% stake would mean that the amount will be around Rs 1.2 trillion to Rs 1.5 trillion.
Zomato’s ₹9,375 crore IPO showed that the public market can absorb large share of sales. The IPO of Zomato was subscribed for about 40 times. With stocks reporting such record gains many firms across the country are planning to go public.
Disinvestment target of the government
The Budget of 2021-22 has set Rs 1.75 trillion target for disinvestment. Rs 1 trillion could be targeted by selling government stakes in various financial institutions and state-run banks which includes the LIC. The rest will be targeted through disinvestment of government’s shares in various public sector firms such as Air India, Bharat Petroleum Corp. Ltd, etc.
New listing norms of the Securities and Exchange Board of India (SEBI)
Securities and Exchange Board of India’s (Sebi) new listing norms states, from the date of listing, the companies having a size of over Rs 1 trillion would be required to achieve minimum 10% public shareholding in two years and at least 25% within five years.
Month: Current Affairs - July, 2021
Category: Economy & Banking Current Affairs
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