Government to Consider Foreign Investments of up to 20% in LIC IPO
According to a Reuters report, the government is considering to allow foreign institutional investors (FII) to invest up to 20% in Life Insurance Corporation (LIC).
The listing is considered to be the country's biggest-ever initial public offering (IPO), with the government aiming to raise up to Rs 900 billion (around $12.24 billion) from its stake sale. It is the second time when the government has invited bids from the law firms to get advice on the mega offering of LIC.
Recently, the Union Cabinet has approved the disinvestment of stake in the life insurance company and along with that, Finance Minister Nirmala Sitharaman will lead the panel to decide on the size of stake sale.
The government has amended the LIC Act of 1956, for insurer's IPO following it any listed company or corporation will be governed by the Companies Act and markets regulator Act (post-IPO) and, has to prepare its quarterly balance sheet and make key developments of the company in public.
SEBI has also amended rules allowing a company to raise up to 5% of its total valuation through IPO only if its valuation exceeds more than Rs 1 lakh crore.
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