India’s Chief Economic Adviser Krishnamurthy Subramanian exuded confidence that the insurance major Life Insurance Corporation of India (LIC) would be listed by the fourth quarter of this year.
“…this year’s budget has ₹1.75 lakh crores as the proceeds from privatisation. Air India is proceeding well. You must have read that there are two bids that have come. Bharat Petroleum and LIC’s listing is also, we are confident it should happen by the fourth quarter of this year,” he said during an event on Saturday.
“I am quite confident that this year, history will look at as a very, very important year for privatisation,” he said during an interactive session as part of ‘PGPMAX Leadership Summit 2021′ of Indian School of Business (ISB) in Hyderabad.
The government recently appointed 10 merchant bankers, including Goldman Sachs (India) Securities, Citigroup Global Markets India, and Nomura Financial Advisory and Securities India, to manage the much-awaited initial public offering (IPO) of the country’s largest insurer LIC.
Four law firms, including two biggest in the country, submitted bids earlier this week to advise the public listing after Centre revised the fee payment structure to make it more attractive. The shortlisted legal firms will look after everything from drafting the IPO papers to responding to regulators’ queries.
The issue is touted to be the largest ever in IPO and is expected to give a big leg-up to the Indian stock market. This stake sale will also be pivotal in meeting the ₹1.75 lakh crore disinvestment target New Delhi has set for the current financial year.
LIC has a 66% market share of new premium collections in India’s crowded insurance market. It manages assets of more than $450 billion.
Subramanian, who was replying to a query on privatisation, talked about the ‘Atma Nirbhar Bharat’ policy and the key reform of promoting privatisation vis-a-vis public sector entities except for some strategic sectors.