The sale of shares of PSU obtains a new topping: LIC

The government set a tough goal to increase Rs 2.1 lakh crore from state-owned companies in the next fiscal year, while revealing its plan to include the country's main insurance company, Life Insurance Corporation.

The FM said that the government would also consider the possibility of at least one major port and then include it in the stock exchanges as part of the plan to obtain value in PSU companies.

The government had aimed to raise Rs 1.05 lakh crore from the sale of stakes in state-owned companies in 2019-20, but in the revised estimates, the target was reduced to Rs 65,000 crore because some large ticket sales did not take off.

The objective of Rs 2.1 lakh crore for next year includes Rs 90,000 crore for the sale of stakes in state banks and financial institutions. The rest is expected to come from the sale in state-owned companies.

Live plus “The stock exchange price disciplines a company and provides access to financial markets and unlocks its value. It also gives retail investors the opportunity to participate in the wealth thus created. The government now proposes to sell a portion of its stake in SCI by way of Initial Public Offering, the finance minister said in her speech. Later, he told TOI that he expected all cases of strategic stake sales such as BPCL, Indian air and others to pass soon, since most of the shovel's work had been done.

The FM also released plans to sell the government balance in IDBI Bank to private, retail and institutional investors through the stock market.