New Delhi: In connection to the reports of the delay in the initial public offer (IPO) of Life Insurance Corporation (LIC), the government on Sunday clarified its stance dismissing speculations saying it is on course for the IPO in the last quarter of this fiscal.
In a tweet, DIPAM Secretary Tuhin Kanta Pandey expressed confidence that IPO plans of LIC are on course and it would happen in the January-March quarter of 2021-22. It is reiterated that the plan is on course for the IPO in the last quarter of this fiscal, Pandey tweeted.
"Some media speculation doubting the feasibility of LIC IPO this fiscal year is not correct. It is reiterated that plan is on course for the IPO in the last quarter of this fiscal," Secretary of Department of Investment and Public Asset Management tweeted.
In July, the Cabinet Committee on Economic Affairs (CCEA) had in July given its in-principle approval for the listing of LIC. The government has already appointed 10 merchant bankers for the transaction.
The government is relying on the listing of LIC IPO and BPCL strategic sales for meeting its disinvestment. Sharing details on disinvestment, Finance Minister Nirmala Sitharaman had recently said the Centre is progressing well.
As per the amendment, the central government will hold at least 75 percent in LIC for the first five years post the IPO and subsequently hold at least 51 percent at all times after five years of the listing. Currently, the government owns a100 percent stake in LIC.
In the Budget Speech 2021, Sitharaman had mentioned the IPO of LIC would be launched in the financial year beginning April 1.