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LIC Stake Sale on Cards Again as Government Looks at Follow-On Public Offer
The government is considering reducing its stake in LIC in the next financial year. The sale of a 3.5% stake in the first IPO raised ₹21,000 crore. Now, plans are underway to gradually reduce the stake through a follow-on public offering (FPO).
The government plans to further reduce the stake in insurance major LIC in the upcoming financial year by way of a follow-on public offering (FPO). Currently, the government has a 96.5% stake in Life Insurance Corporation of India (LIC). In May 2022, the government had sold 3.5% of the government-owned Life Insurance Corporation of India (LIC) in an initial public offering (IPO) within the price band of ₹902-949.
This share sale raised approximately ₹21,000 crore for the government. Financial Services Secretary M Nagaraju said on Monday, "LIC's public issue will have to be brought in gradually. We have asked DIPAM to look into the possibility of reducing its stake in LIC."
The proposal for the merger of Power Finance Corporation (PFC), which is a public sector lender for the power sector, and its subsidiary REC has been placed in the budget. The decision will be taken at the highest level. In March 2019, Power Finance Corporation sold the majority stake of REC to the government for Rs 14,500 crore.
