The Government of India has asked the regulators to expedite the review of the draft prospectus of the Life Insurance Corporation of India. According to the Reuters report, he has been told this by two government sources with knowledge of the matter. According to the report, the government is contemplating bringing the country’s biggest IPO by the end of March. In such a situation, she wants to remove all the obstacles to bring him. The Securities and Exchange Board of India (Sebi) has been appealed to complete its process in less than three weeks. This process usually takes a period of 75 days.
According to the report, an official said that he has ten bankers for the deal. They are available 24/7 to answer any SEBI queries. He further said that a correct and clear draft prospectus will be submitted.
Draft prospectus to be submitted in next few days
The official also said that the government’s disinvestment department is paying full attention to the IPO of the government insurance company. The company is expected to earn $12 billion from this. And it has put aside plans for another privatization for this fiscal. According to the report, the draft prospectus is expected to be submitted to SEBI in the next few days. However, the finance ministry SEBI, and LIC did not comment on the matter to Reuters.
The administration of Prime Minister Narendra Modi is giving a big push to get LIC listed by the end of this financial year. The Modi government wants to give more momentum to its privatization program.
Let us tell you that Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), told PTI that the disinvestment amount of LIC is included in this year’s budget as we aim to list it before March 31. He said that LIC’s IPO is very important for the government to achieve the disinvestment target.
The disinvestment target in the budget for the financial year 2021-22 is Rs 1.75 lakh crore. In the last financial year, Rs 32,835 crore was raised through disinvestment. In the current financial year so far, Rs 9,330 crore has been raised by selling minority stakes in PSUs.