LIC IPO Update: Investors are eagerly waiting for LIC IPO. The government has said that LIC’s IPO will come in March. The Union Cabinet on Saturday allowed foreign direct investment (FDI) of up to 20 percent through the automatic route in LIC, which is preparing to bring an IPO.
Meeting chaired by PM Modi
Let us tell you that this step of the government will ease the disinvestment of the country’s largest insurance company. The decision in this regard was taken in the cabinet meeting chaired by Prime Minister Narendra Modi.
Government approved listing
The government has approved the listing of LIC’s shares in the stock market through IPO. Foreign investors may be willing to participate in this mega IPO, however there is no special provision for foreign investment in LIC under the extant FDI policy, which is a statutory corporation constituted under the LIC Act, 1956.
20 percent is foreign investment
At present, as per the FDI policy, the foreign investment limit in public sector banks is 20 per cent under the government approval route, so it was decided to allow foreign investment up to 20 per cent in LIC and other such corporate bodies.
IPO was approved in July last year
Such FDI has been placed under the automatic route to expedite the process of raising capital, a source said. The Cabinet had approved the initial public offering of LIC in July last year. LIC has applied for this issue before the market regulator SEBI.