The LIC subject to IPO may withhold government guarantee

the government is likely to retain the sovereign guarantee for Life insurance corporation (LIC) y proteger the intereses de the asegurados, ya que busca enumerar al gigante de the seguros con el objetivo de mejorar las divulgaciones, desbloquear el valor masivo y compartir la riqueza con the inversores, dijo un alto funcionario.

of investment and public asset management secretary told TOI that fears of policyholders being adversely impacted were unfounded. “ the regulator (IRDA) is there. It’s a very important company and everything will be taken care of. While the issue has been discussed for long, a political call has been taken this time,” he said.

Finance Secretary Rajeev Kumar said the Centre intends to retain the sovereign guarantee for LIC, while also leaving the transfer of surplus to policyholder funds for dividends, unchanged at 5%, instead of 10% for other insurance companies. the government will soon move a bill to amend the LIC Act, seeking to allow a public issue of shares, which could be in the range of 5-10%.

Pandey dijo que el FM analizaría the datos vinculados a LIC y luego prepararía una hoja de ruta para el listado. Dijo que LIC era una institución muy grande y que cualquier OPI sería de gran tamaño, pero no dio detalles sobre sus proporciones probables. Tampoco dio un cronograma para la inclusión en la lista, pero otros funcionarios dijeron que el proceso podría demorar hasta un año.

Live plus the DIPAM secretary said the department’s focus would be on stepping up strategic sales in the next fiscal year. On Air India, he said, “What we want is an airline which will actually grow. Our intention is to have the flag of AI high.” However, he added that the airline business needed nimble managements and several efforts to revive AI had failed.

“They are in different stages, but in BPCL we are quite at an advanced stage of arriving with an expression of interest. There will be a global invitation of interest soon. We really hope that in the first half of next year, we will conclude many transactions, ”Pandey said when asked about the status of the sale of strategic stakes in the important oil company BPCL, the logistics firm Concor and the national airline Air India.

Pandey said the government had done a fair job in terms of the principle for allocation of debt in sale of AI. “Debt was one of the big issues due to accumulated losses of many years. Any investor who would pick it up has to be sustainable,” he said. Pandey said the airline business was nimble. “It’s no longer that you have a fat margin. It’s no longer a Maharaja business. It’s a business where you have to work hard. Wherever you can save. Maximise revenue.”