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The government has refuted speculations around the delay in the initial public offer (IPO) of Life Insurance Corporation (LIC) and said that it is on course for the IPO in the last quarter of this fiscal. Once listed, LIC is likely to become one of the biggest domestic companies by market capitalisation with an estimated valuation of 8-10 lakh crore.

DIPAM Secretary Tuhin Kanta Pandey  in a tweet expressed confidence that IPO plans of LIC is on course and it would happen in the January-March quarter of 2021-22.

It is reiterated that the plan is on course for the IPO in the last quarter of this fiscal, Pandey tweeted.

"Some media speculation doubting the feasibility of LIC IPO this fiscal year is not correct. It is reiterated that plan is on course for the IPO in the last quarter of this fiscal," Secretary of Department of Investment and Public Asset Management tweeted.

 

The Cabinet Committee on Economic Affairs (CCEA) had in July given its in-principle approval for the listing of LIC. The government has already appointed 10 merchant bankers for the transaction.

To facilitate the listing of LIC, the government earlier this year made about 27 amendments to the Life Insurance Corporation Act, 1956.

As per the amendment, the central government will hold at least 75 per cent in LIC for the first five years post the IPO and subsequently hold at least 51 per cent at all times after five years of the listing.

In her Budget Speech 2021, Sitharaman had said the IPO of LIC would be launched in the financial year beginning April 1. Currently, the government owns a100 per cent stake in LIC.

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