LIC IPO Latest Update : In the budget that came a day earlier, the government reduced the target of disinvestment from Rs 1.75 lakh crore to Rs 78 thousand crore.
Now a day later, the news is coming out that the size of LIC’s IPO may also remain low. This is believed to be the real reason for reducing the disinvestment target.
LIC IPO Latest Update: The government has reduced the disinvestment target by more than half in the Union Budget 2022, a day earlier.
Now the disinvestment target for the current financial year (FY22) has been changed to Rs 78 lakh crore instead of Rs 1.75 lakh crore. Its real story is coming out a day after the budget. In fact, the government has reduced the size of the ‘largest IPO’. Now LIC IPO can be half of the already estimated size.
Calculation of LIC’s Value Done
According to a report in ET Now, the government may offer to sell only 5 per cent stake in LIC for now. The government is trying to raise Rs 65 thousand to 75 thousand crores instead. According to the report, the government has come to know about the value of LIC. Accordingly, the size of the IPO has been decided. The DRHP of this IPO can be filed with SEBI within a week.
Earlier There Was a Plan to Sell Up to 10% Stake
Earlier it was being said that this IPO could range from Rs 80 thousand crore to Rs 1 lakh crore. The government was trying to sell up to 10 percent stake in LIC through this IPO. LIC IPO is in news since last year.
Keeping this IPO in mind in the last budget, the government had set a huge target of disinvestment of Rs 1.75 lakh crore. Doubts were being raised on LIC IPO after the disinvestment target was revised to less than half in this budget.
Now Less People Will Get LIC Shares
According to the ET report, advisory firm E&Y has calculated the value of LIC. The government insurance company is now trying to raise about 25 thousand crore rupees from anchor investors before the IPO.
It has been told in the report that in the IPO of LIC, 5-10 percent quota can be reserved for the insured of the company. However, due to the reduction in size, now only fewer people will be able to allot shares in this IPO.
Due to This The Target Was Reduced in The Budget
The government has now set a disinvestment target of Rs 78 thousand crore for the current financial year. In the economic review that came a day before the budget, it was told that so far only about 13 thousand crore rupees have been raised through disinvestment. This figure is from April 2021 to January 24, 2022.
Now according to the reduced size of LIC IPO, then the government can get Rs.65 thousand crores to Rs.75 thousand crores from this. Even in the conservative approach, the government will raise Rs 65 thousand crore from this IPO. In this way, the revised disinvestment target can be easily achieved.
If These 3 Deals Come True, Then The Estimate of The Review Will Come True
It was also said in the Economic Survey that the government can raise more than Rs 1 lakh crore from disinvestment in the current financial year. According to the review, the government can get Rs 1-1.30 lakh crore from disinvestment in the financial year ending 31 March 2022.
There is also a plan to disinvest the government helicopter company Pawan Hans during the remaining 2 months. Apart from this, the government is also trying to sell its stake in Axis Bank and ITC. The government can get a few thousand crores from Pawan Hans.
The current value of the government’s stake in ITC is around Rs 21 thousand crore. Similarly, Rs 3,700 crore can be raised from Axis Bank’s stake. If these three plans are successful, then the estimate of the economic review can be achieved.Live TV
