Union Budget 2021: The government has already initiated the process for LIC IPO.
Finance Minister Nirmala Sitharaman on Monday said initial public offering (IPO) of insurance behemoth Life Insurance Corporation (LIC) will take place next financial year beginning April.
The government has already initiated the process for LIC IPO.
“In 2021-22, we would also bring the IPO of LIC for which I am bringing the requisite amendments in this Session itself,” Finance Minister Nirmala Sitharaman said in the Budget speech for 2021-22.
Currently, the government owns the entire 100 per cent stake in LIC.
LIC is likely to become the country’s biggest company by market capitalisation with an estimated valuation of Rs 8-10 lakh crore.
Besides, the government is planning to privatise two public sector banks and one general insurance company in 2021-22.
“Other than IDBI Bank, we propose to take up the privatization of two Public Sector Banks and one General Insurance company in the year 2021-22. This would require legislative amendments and I propose to introduce the amendments in this Session itself,” she said.
During the post Budget media interaction, the Finance Minister said the ministry will take a call on which banks to be privatised and what manner.
“Had she known the name, she would have announced this in her Budget speech,” the minister said when asked to disclose the names of the public sector financial institutions.
LIC IPO and privatisation of two public sector banks and an insurance company are part of the government disinvestment programme.
The government on Monday budgeted Rs 1.75 lakh crore from stake sale in public sector companies and financial institutions.
The amount is lower than the record Rs 2.10 lakh crore which was budgeted to be raised from CPSE disinvestment in the current fiscal year.
However, the COVID-19 pandemic impacted the government’s CPSE stake sale programme, and the target has been lowered to Rs 32,000 crore in the Revised Estimates.
So far this fiscal, the government has mopped up Rs 19,499 crore from CPSE stake sale and share buyback.
For fiscal 2021-22, out of the total Rs 1.75 lakh crore, Rs 1 lakh crore would come from selling government stake in public sector banks and financial institutions, and Rs 75,000 crore would come as CPSE disinvestment receipts.
India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam Ltd, among others would be completed in 2021-22.