The government may ask the investment banks to submit proposals for the initial public offering (IPO) of the Life Insurance Corporation of India (LIC) this month, reports said.
As per a report in Bloomberg, the Indian government will share invites for the sale of the shares of LIC in the coming weeks. The report said that the IPO could happen in March 2022.
Accroding to Jefferies, the LIC listing is possibly going to get Rs 20,000-Rs 30,000 crore, CNBC-TV18 had recently reported.
The Bloomberg report further said that the government is keen to make the sale in order to fill the gaps in the country's budget. It is estimated that by selling state assets like Air India Limited and Bharat Petroleum Corporation, the Indian government is going to raise $24 billion.
A report in The Indian Express cited an unnamed government official as saying that the Ministry of Finance is speeding up the valuation process of LIC.
The is evaluating the embedded value of LIC, the article said, adding that a report about the same will be prepared within a month.
Accordign to the report, the government official said that a meeting of the core group of secretaries on disinvestment was held last month where it was decided that the valuation process is going to be fast-tracked.
The decision was taken after it was realised that the value estimation was crucial to the listing process of the insurer, the report added.
LIC made a profit of Rs 2,712.70 crore in 2019-20 which increased from 2018-19 when it made a profit of Rs 2,688.49 crore.