The Finance Ministry informs the Lok Sabha that the government intends to sell a 5 percent interest in LIC through an initial public offering (IPO). It is the Minister of State for Finance Dr Bhagwat Karad who told the Lok Sabha that the government of India plans to sell 5% of its interest in the state insurer Life Insurance Corporation of India (LIC) through its much-anticipated initial public offering (IPO).
He further stated that the proposed LIC IPO will allow the government to realise the value of its investment in the public insurer, as well as position the company to raise funds from the market for future growth. Because of the listing requirements and disclosures, Karad believes the LIC IPO will improve governance by increasing market discipline and transparency.
"These benefits, in turn, will empower the Government and LIC to pursue economic and insurance sector growth, thereby promoting development and social protection," he added.
LIC, according to the Union Minister, invests in housing and supplies (water supply, road, irrigation and power projects, among others). As of December 31, 2021, LIC had outstanding investments in the housing (including real estate) and infrastructure sectors of Rs 48,896.05 crore and Rs 2, 50,389.80 crore, respectively.
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