For the past several months, there has been talk of an IPO of the Life Insurance Corporation of India (LIC). However, in the last two days, the discussions have intensified and the central government has taken some important decisions in this regard. LIC's IPO was expected earlier this fiscal. However, that did not happen.
LIC's IPO has been given the green light by the Union Cabinet. The Cabinet Committee of Economic Affairs (CCEA) has given in-principle approval to the initial public offering (IPO). This has paved the way for the realization of LIC's IPO, which has been under discussion for months.
Nitin Gadkari included in the committee
A committee headed by Union Finance Minister Nirmala Sitharaman will decide on the size of LIC's IPO and how much capital will be raised from it. The decision will be taken by an alternative body, which will include Nitin Gadkari and some other Union ministers.
When will LIC's IPO come?
The government is pushing for an IPO of LIC in the last quarter of the current financial year. The government expects to bring the IPO around Diwali this year. The exact market value of the entire LIC is yet to be decided. A legal adviser will be appointed and the process is expected to be completed by August.