Cabinet approval for LIC IPO plan, know when you will get a chance to earn from IPO

New Delhi. Union Finance Minister Nirmala Sitharaman in her budget speech for the financial year 2021-22 had announced to sell some stake of the government in the public sector insurance company Life Insurance Corporation of India (LIC). He had said that the government stake in LIC will be sold through IPO. Since then, investors are continuously waiting for LIC’s IPO. Now the Central Committee on Economic Affairs (CCEA) has approved the IPO plan of LIC. This has cleared the way for the launch of the IPO. After CCEA’s approval of LIC’s IPO last week, it is believed that the wait of investors may end in March 2022. In other words, investors can get a chance to earn big money by investing money in LIC’s IPO in March 2022.

Committee of Ministers will take all decisions related to IPO
The central government is preparing to launch LIC’s IPO in March 2022. According to information received from sources by CNBC-TV18, the panel of ministers will decide the pricing of LIC. Along with this, the panel will also decide how much share will be sold in LIC. This committee will decide how many shares will be brought in the market. At present LIC is working towards increasing its value. Apart from this, emphasis is also being laid on internal efficiency and product restructuring. The Center has selected SBI Capital Markets and Deloitte as advisors ahead of the IPO. It is believed that this will be the biggest IPO of the country so far.

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LIC will invest in a private company for the first time
In the current financial year, the central government has set a target of raising Rs 1.75 lakh crore through disinvestment and privatization. According to the annual report released by LIC, its total assets at the end of the financial year 2019-20 are Rs 32 lakh crore. LIC’s market share in the home insurance sector is close to 70 percent. The government currently holds 100 per cent stake in the company. Let us tell you that LIC also invests in different government companies. For the first time, LIC can invest in Zomato, a private company listed on the stock market. Zomato is coming with an IPO of 9,375 crores. Its subscription will be open from 14 to 16 July.

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