In a remarkable budgetary step, the government will be disinvesting the mammoth public sector insurance entity – the Life Insurance Corporation. The disinvestment will be in the form of minority shares in the company through IPOs.
This is the first time that the government is announcing a plan to sell the shares of its prestigious financial entity that is supposed to deal with huge amount of premium mainly that of households.
Listing of LIC will bring certain interesting facts
- What will be the size of LIC’s business value
- Government will be curtailed to use the funds of LIC for its captive purposes once the LIC is listed in the stock exchange.
If implemented, the LIC disinvestment will be one of the biggest events in India’s disinvestment history. It is also going to be the biggest one after the minority share selling in ONGC during the early 2000s.