Even if the government is working hard to meet is Rs 30,000 crore disinvestment target this year, country’s largest institutional investor Life Insurance Corporation of India (LIC) has said that, “it’s not into the business of bailing out companies.”
DK Mehrotra, LIC chairman speaking on the sidelines of an event here said “We don't bailout anybody, we only take commercial decisions.”
He also added that the government hasn't approached LIC to meet disinvestment targets yet.
LIC is 100% owned by the government.
Rashtriya Ispat Nigam Limited’s (RINL) IPO which was to hit the streets on October 15 was deffered for the third time this year on the valuation differences. RINL’s IPO was first in the series of disinvestment measures which government has planned for this year. RINL is the second largest PSU steelmaker in the country.
Mehrotra further said, LIC plans to invest Rs. 2.07 lakh crore this fiscal as against Rs. 1.95 lakh crore invested last year, and the equity investments would remain same as that of last year. Last year LIC had invested about Rs 45,000 crore in equities.
LIC would be betting on pharma, IT, FMCG and banks as it considers them to be bullish right now.
But it is not averse to invest in other sectors as well. ”We look into opportunities and most importantly the company’s performance,” Mehrotra said.
When asked about its plans to increase ceiling on investment in a single company, Mehrotra said, “We are discussing this with the ministry and the regulators, and something concrete should come up very soon however as of now we haven’t heard anything from the regulator.”
Last fiscal, LIC had helped in recapitalisation of a slew of public sector banks, which was of big help to the lenders given the weak government finances, but which made Reserve Bank of India uncomfortable and it conveyed its displeasure to the banks boards.
It also saved the face of the divestment department by subscribing to almost the entire ONGC issue worth around Rs 12,000 crore.
