The central government has come into action mode to sell its stake in Life Insurance Corporation of India (LIC). For this, the government has taken a big step. Let’s know about it in detail ..
Request application for evaluation of LIC
Actually, the Finance Ministry has invited applications for the evaluation of the insurance company LIC. For this, companies can submit their applications by December 8.
General evaluation method
This is a common evaluation method. In this, the present value of the company’s current assets and the profits from the insurance policies currently running are added.
Government selling stake in LIC
Let us tell you that the government’s plan is to sell a minority stake in LIC and list it in the stock market. The government wants to sell it in the current financial year itself.
Sale through IPO
It will be sold through Initial Public Issue (IPO). The central government has appointed Deloitte and SBI Capital as advisors for the transactions prior to the IPO.
Target to raise 2.10 lakh crore
Let us tell you that the government has set a target of raising Rs 2.10 lakh crore from stake sale in this financial year. Out of this amount, 1.20 lakh crore rupees will be raised through disinvestment in central undertakings.
Air India and BPCL also in queue
At the same time, about 90 thousand crore rupees will come from stake sale in financial institutions. To raise this amount, the government is engaged in selling the stake of Air India and BPCL apart from LIC.