Who will have insurance business after LIC’s IPO, Finance Ministry clarified

LIC IPO: The initial public offering (LIC IPO) of LIC will help the government achieve its disinvestment target of Rs 1.75 lakh crore in the current financial year.

LIC IPO: After the listing of Life Insurance Corporation of India (LIC), 60 percent of the insurance business will go to the listed companies. Amit Agarwal, Additional Secretary in the Finance Ministry said this. The Cabinet Committee on Economic Affairs (CCA) has given in-principle approval to the listing of LIC in July. K

Number of insurance companies reached 69

Agarwal said that India is developing as an emerging economy amid global challenges. Our financial system has matured, deepened and reached a level. He said that after opening up the insurance sector to competition, it has matured. Today the number of insurance companies has reached 69 which was only 8 in 2000.

Aggarwal said, after the completion of the proposed listing of LIC, 60 percent of the business of the insurance industry will go to the listed companies. This sector is growing faster than the overall economy.

Policyholders will get discount

In the monsoon session of Parliament, the government has said that LIC can set a separate quota for customers in its IPO. 10% of the issue size can be reserved for policyholders.

LIC’s IPO can come by the end of the current financial year 2021-22 i.e. by 31 March 2021. In addition, Deloitte and SBI Caps have been appointed as pre-IPO transaction advisors.

Country’s biggest IPO

It is believed that LIC’s IPO will be the biggest IPO in the country. It has been estimated that it can go from Rs 90,000 crore to Rs 1 lakh crore. Through this, the government will get revenue. The LIC Act of 1956 has been amended.

The draft prospectus for the IPO will also be filed soon. DIPAM Secretary said that discussions are on with the stock market regulator for compliance of other requirements for the IPO.

The ministerial panel will now decide on other aspects related to the IPO. Life Insurance Corporation is working on increasing its value as much as possible. Apart from this, emphasis is also being laid on internal efficiency and product restructuring.

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