The government is putting the wheels into motion for the partial disinvestment of one of its prime assets: Life Insurance Corporation (LIC) of India, five months after Minister of Finance Nirmala Sitharaman announced an ambitious ₹2.1 lakh crore-disinvestment target for FY21. This target is four times higher than the disinvestment it achieved— ₹48,417 crore—for the year ended March 2020.
Two advisors to the pre-IPO transactions will be chosen in the coming weeks, who will be involved in preparatory work ahead of the IPO, and advise and assist the government on the timing of the minority stake sale as well as the capital structure of the institution. The Department of Investment and Public Asset Management (DIPAM) has clarified that a separate team of legal advisors will decide on the embedded value of LIC. Book runners to the issue will be chosen in coming quarters.
The government—which has a 95 percent stake in LIC—is yet to decide on the quantum it seeks to sell through the IPO and the timing of the offering. Finance Secretary Rajiv Kumar’s assessment of an offering in the second half of the current fiscal year was made prior to the coronavirus outbreak. But if LIC seeks to repeat the success of Coal India in 2010—becoming India’s largest such offering with bids for ₹2.36 lakh crore, more than 15 times its target of ₹15,475 crore—it will need to move fast.
LIC is India’s largest insurer and a leader in market share but there are several headwinds: Asset quality concerns continue to impact its balance sheet, it is losing market share to private insurers, there are growing employee concerns over privatisation moves and uncertain market trends that are likely to impact the offering at the time of listing.
この記事は Forbes India の August 14, 2020 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Forbes India の August 14, 2020 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
Home-Cooked Meal Is Now Greatly Valued
The pandemic has also brought with it an improved focus on hygiene, use of technology in dining, rise of cloud kitchens and resurgence in popularity of Indian ingredients
Paytm 3.0 - Reaching Near Breakeven In Two Years
As of 2020, Vijay Shekhar Sharma’s super app for financial services had run up losses in thousands of crores. Now, as digital payments gets yet another boost courtesy Covid-19, he’s hopeful of reaching near breakeven in two years
THE PANDEMIC HAS CAUSED WOMEN GREATER LABOUR PAIN
Covid-19 has shown that women are more likely to face the brunt of job losses than men, and find fewer opportunities when they want to resume. That apart, several have to deal with increased hours of unpaid work at home and even domestic abuse
LEADERSHIP WILL BE ABOUT SEEING THE BIGGER PICTURE
Leaders must not only guard their teams first during a crisis, but also deal with stakeholders with respect and dignity. And apart from pursuing business goals, they should remain committed to our planet and the environment
PHILANTHROPY SHOULD BE HUMBLE, BUT NOT MODEST
Apart from building a flexible and resilient framework for the future, philanthropists, civil society and the government must work in tandem so that every rupee is absorbed on the ground
INTEGRATED HEALTH CARE, TECH WILL DISRUPT SECTOR
While clinical research will get a boost, having a skilled workforce and public spending on health care will be challenges in the near term
DIGITALISATION WILL HELP IN VALUE CREATION
As the pandemic brings technology and innovation to the core of business and daily life, the next decade will see about 150 million digital-first families in India
Industry 4.0: Climate Revolution?
Augmenting sustainability alongside digital capabilities is an economic, competitive and global opportunity for India’s businesses, but regulations need to reflect intent
EV Dream Still Miles Away
Electric vehicles have remained a buzzword in India for years. But not much has moved on ground due to high upfront costs, range anxiety and charging infrastructure
Living Waters
A virus has caused us to scramble for oxygen but our chokehold on the environment is slowly strangling the very waters that breathe life into us. The virus is a timely reminder: We are merely consumers, not producers of life’s breath on this planet
