LIC share sale is an 'Atmanirbhar issue': DIPAM secy Tuhin Kanta Pandey

The issue is an example that capital markets can be run without having to completely rely on foreign investors, Tuhin Kanta Pandey said

The initial public offering (IPO) of Life Insurance Corporation of India (LIC) is an Atmanirbhar issue, and has been predominantly lifted by domestic investors, Tuhin Kanta Pandey, secretary, Department of Investment and Public Asset Management (DIPAM), said.

“This can be perceived as an Atmanirbhar issue...this issue can be an example of Atmanirbhar Bharat. Given the size of the issue, (that) India has been able to pull it off shows that the capability of our capital markets and domestic investors has increased substantially,” Pandey said.

The issue is an example that capital markets can be run without having to completely rely on foreign investors, he said. “But domestic investors are welcome too. Some foreign investors have participated, but predominantly this issue has been domestically lifted,” Pandey said. Subscription by FIIs is lower than what was expected for such an issue, he said, adding that foreign investors’ participation in the anchor book is low too.

“The government’s intention of having a wide ownership of LIC’s shares has been met, people have opened demat accounts in tier 2 and tier 3 cities ahead of the IPO,” Pandey told Business Standard. “This is an issue of lakhs of Indians,” he said.