Centre's PSU disinvestment drive gets a helping hand from LIC, SBI

The two lapped up the bulk of shares during the offers for sale of HAL, Bharat Dynamics

The life insurance giant subscribed nearly 50 per cent of shares on offer in the HAL OFS, while LIC and SBI put together bought nearly three-fourths of the shares in the BDL OFS

The government’s 2020-21 disinvestment drive would have been off to a rocky start if not for the helping hand from state-owned institutions, such as Life Insurance Corporation (LIC) and State Bank of India (SBI). The Centre kicked off this fiscal year's disinvestment programme with a Rs 4,900-crore offer for sale (OFS) from Hindustan Aeronautics (HAL) and followed it up with the Rs 770-crore OFS from Bharat Dynamics (BDL). The latest shareholding data for the two defence stocks revealed that LIC and SBI played white knight to the government. The life insurance ...