The government of India is taking all the possible measures to ensure Life Insurance Corp. (LIC) of India’s record initial public offering (IPO) is a success. The authority has been sending personal text messages to people and publishing advertisements in newspapers to ensure maximum people get to know about the IPO and invest in it.
As per the economic agenda of the state, the government aims to raise between ₹40000 crore and ₹1 lakh crore this quarter through this IPO. To get the maximum output from LIC’s IPO, authorities will also be reviewing the rules on foreign direct investment and may even amend a few to ensure even investors from abroad can participate. Till date, foreigners could invest in various equity stakes of other Indian insurers but they were not allowed to invest in equity stakes of LIC, as it is a special entity created by an act of the Indian Parliament.
Amending the rules and regulations of the foreign investments in equity stocks of LIC will allow various global funds to take part and buy more after the exchange listing. Last month, the authority has tightened the rule regarding the share sales by anchor investors.
Policyholders of LIC have been receiving updates on text messages regarding the IPO for quite a while now and the authority has also rolled out advertisements in newspapers with the title, “It’s best in life to be prepared." In the recent notice published by LIC on the official websites, policyholders have been asked to update their details like the PAN number and to create or link their existing Demat account to participate in the IPO.
The Centre will allow 20 per cent foreign direct investment in the Life Insurance Corporation of India (LIC), like in the case of public sector banks (PSBs), reported Business Standard.
Union Finance Minister Smt. @nsitharaman reviewed progress of the LIC IPO in New Delhi today in presence of @SecyDIPAM; Secretary @DFS_India and Senior Officials @LICIndiaForever and @FinMinIndia via VC. pic.twitter.com/UvQjKkuv3a— Ministry of Finance (@FinMinIndia) January 7, 2022
Finance Minister, Nirmala Sitharaman, has been reviewing the progress of LIP IPO herself. This IPO is expected to be the biggest IPO in India’s marker history. Although the government has not announced the exact date or the price band of the issue, it is likely to hit the market in March.