LIC IPO News: Government of India is not expected to get help in bringing LIC IPO in the current financial year. This is because of the constant hurdles in the completion of the formalities related to the listing of LIC in the stock market.
The Modi government at the Center wanted to list the country’s largest insurance company Life Insurance Corporation of India (LIC) in the stock market in the current financial year itself, but the valuation of the government insurance company has not yet been found. Valuation of LIC is actually taking more time than necessary and hence the formalities related to it have not been completed till now.
Apart from this, there are many issues due to which it is difficult to meet the valuation of LIC. A senior official working with the merchant banker has given this information. Even if the valuation of LIC is done, there are several regulatory procedures that have to be completed before the IPO.
Information to the Business Regulatory Authority (IRDA) with SEBI
An official working with a merchant banker said that before going for an IPO of a company, not only the Securities and Exchange Board of India or SEBI has to give complete information about it but also get approval from the regulator of the company doing business. Is. The interesting fact is that the post of the head of Insurance Regulatory and Development Authority of India or IRDA is lying vacant for the last 7 months.
LIC’s huge assets
LIC is one of the largest insurance companies not only in the country but in the world. The problem with its valuation is because of its large product mix, real estate assets, associated entities and profit sharing structures, etc., are complex.
Complicated listing process
Only then can the size of LIC’s share sale be determined. An official associated with the merchant banker said that the process of listing a company in the stock market in India is so complicated that even after completing the valuation of LIC, it may take three to four months to complete the rest of the formalities. Accordingly, LIC’s IPO is not expected in the current financial year.
According to the government, the process on the right track
The Government of India wants to meet its disinvestment target of Rs 1.75 lakh crore through LIC and BPCL. Speaking on the issue of disinvestment, Finance Minister Nirmala Sitharaman recently said that the government is progressing as expected in this direction.
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