LIC IPO Details: Centre Allows 20 Per Cent FDI To Facilitate Disinvestment

LIC IPO Date: According to FM Sitharaman, the IPO will not be delayed due to the ongoing Russia Ukraine crisis and the process is 'on track'.

New Delhi: The central government has given a nod to Foreign Direct Investment (FDI) of up to 20 per cent via automatic route in the upcoming LIC IPO. According to a report by PTI, the FDI has been permitted to support the disinvestment plan of the government.

On the recommendation of the Ministry of Finance, the cabinet by Prime Minister Narendra Modi took the decision. The LIC IPO date, according to Reuters, has been fixed around March 11, 2022.

Under the current FDI policy of the government, according to Mint, the 74 per cent permission of FDI in the insurance sector does not apply to government-controlled LIC. LIC had no provision for foreign investment before this.

LIC IPO To Soon Hit The Bourses

According to the latest media reports, Finance Minister Nirmala Sitharaman has said that the IPO is on track. According to LIC DRHP, the government has asked SEBI to sell a 5 per cent stake in the company.

With this around 316 million LIC shares are expected to be sold in the share markets of India. The government is expecting to get Rs 63,000 crore from the LIC IPO.

The investors in India have been sceptical about the IPO due to the current Russia Ukraine Crisis but FM Sitharaman last week made clear that LIC IPO is on the track and will be listed as per schedule.

A special 10 per cent reservation of shares has been fixed in the IPO for policyholders and employees of LIC. However, they need to link their PAN card with the policy to avail of the reservation.