25 thousand crore share capital
New Delhi, July 12 (IANS)| The Cabinet Committee on Economic Affairs (CCEA) has given in-principle approval to the initial public offering (IPO) in keeping with the government’s plan to come up with a mega IPO of insurance major LIC in the current financial year. A top official source said the CCEA in its meeting on July 7 cleared the rescheduled plan for the IPO finalized by the Department of Investment and Public Asset Management (DIPAM), removing several hurdles for the country’s biggest IPO. Went.
“We have finalized the route for the proposal and how the investors should be linked with the insurer. This paves the way for the IPO for FY22, for which we are planning,” the official said. Were.” Officials further said, now the Alternative Mechanism (AM) or Group of Ministers will sit to decide on the timing and quantity of shares to be offered. Appointment of managers for this issue will also follow.
After the Union Budget of FY 2022, the government has taken several legislative and executive steps to pave the way for the mega IPO. As per the proposed amendments under the Finance Bill, 2021, the authorized share capital of LIC will be Rs 25,000 crore, which will be divided into 2,500 crore shares of Rs 10 each. Capital markets regulator SEBI has also relaxed minimum public offering norms to pave the way for LIC IPO.