LIC Policy Holders Will Get LIC Shares Worth Rs 17,500 Crore After IPO Launch; 10% To Be Reserved
The privatization of LIC and other public sector banks has been doing the rounds in the media. The government has revealed the ambitious plans for the privatization of the insurance behemoth. In a recent announcement about the strategic sales and what seems to be a merry news for the policyholders of Life Insurance Company (LIC), the policyholders will now be having an opportunity to be a proud owner of the biggest insurer of the country.
From Policyholders to Shareholders:-
This comes as the government plans to reserve 10% of the planned LIC IPO for policyholders.
Tuhin Kanta Pandey, Dipam secretary said that for the IPO of LIC, they have made an act that will make the IPO inclusive of policyholders. They plan to offer policyholders an opportunity to become shareholders. He revealed it to Times of India in an interview as he detailed the next steps for strategic sales.
As the Centre aims to raise Rs 1.75 lakh crore through disinvestment in FY22, In her budget speech Finance Minister Nirmala Sitharaman said that the LIC IPO will be launch in the next financial year.
One Of Biggest Reforms After 1991 : Dipam Secretary
Speaking of the privatisation policy announced in Monday’s Budget, Mr Pandey called it as a watershed moment and a landmark shift as it has given a road map for the next four to five years. The publication which quoted him read that this according to him, after 1991 reforms, is the biggest reform as far as the public sector is concerned. There was a policy in 2004 which was a case-by-case basis, but for the first time the entire non-strategic sector is available. This means you have a steel sector which is completely available for privatisation.
Mr. Pandey said that the disinvestment target set for FY22 was not realized due to the occurrence of the Covid pandemic. He said that now that the world is steering ahead of the pandemic, and things are looking optimistic and hence a realistic target can be achieved.
On Monday, government announced that the general insurance company and two public sector banks will be privatised. The timeline of privatisation of LIC will be next financial year.
The disinvestment of BPCL and Air India, along with these three will help the centre to achieve the disinvestment target for FY22, say experts.