Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the rank-math domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/u596154002/domains/usbusinessreviews.com/public_html/wp-includes/functions.php on line 6114
Cabinet likely to consider proposal for FDI in IPO-bound LIC on Saturday - Best Business Review Site 2024

Cabinet likely to consider proposal for FDI in IPO-bound LIC on Saturday

[ad_1]

Table of Contents



The Union Cabinet is likely to consider on Saturday a proposal seeking changes in the foreign direct investment (FDI) policy to facilitate disinvestment of the country’s largest insurer LIC, sources said.


The Department for Promotion of Industry and Internal Trade (DPIIT) has mooted the proposal after taking views from the finance ministry.





“The Cabinet will take up the matter tomorrow,” a source said.


According to the current FDI policy, 74 per cent foreign investment is permitted under the automatic route in the insurance sector. However, these rules do not apply to the of India (LIC), which is administered through a separate Act.


As per Sebi rules, both FPI and FDI are permitted under public offer. However, since the Act has no provision for foreign investments, there is a need to align the proposed IPO with Sebi norms regarding foreign investor participation.


The Cabinet had in July last year approved the initial public offering (IPO) of LIC and the stake sale is being planned for the current March quarter.


Setting the stage for the country’s biggest-ever public offering, on February 13 filed draft papers with capital market regulator Sebi for the sale of 5 per cent stake by the government for an estimated Rs 63,000 crore.


The initial public offering of over 31.6 crore shares or 5 per cent government stake is likely to hit D-street in March. Employees and policyholders of the insurance behemoth would get a discount over the floor price.


According to the draft red herring prospectus (DRHP), LIC’s embedded value, which is a measure of the consolidated shareholders value in an insurance company, has been pegged at about Rs 5.4 lakh crore as of September 30, 2021, by international actuarial firm Milliman Advisors.


Although the DRHP does not disclose the market valuation of LIC, as per industry standards it would be about three times the embedded value or around Rs 16 lakh crore.


The LIC public issue would be the biggest IPO in the history of the Indian stock market. Once listed, LIC’s market valuation would be comparable to top companies like RIL and TCS.


So far, the amount mobilised from IPO of Paytm in 2021 was the largest ever at Rs 18,300 crore, followed by Coal India (2010) at nearly Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor



[ad_2]

Source link

agen slot777 slot pulsa slot pragmatic slot gacor situs toto slot 777 deposit dana 10k surga slot toto slot link situs toto situs toto slot situs toto situs toto slot situs toto slot777 slot gacor slot gacor slot gacor situs toto slot slot pulsa 10k toto togel situs toto slot situs toto slot gacor terpercaya situs toto slot dana