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LIC will be IPO of the decade, akin to Saudi Aramco listing: Experts

Currently, the government owns the entire 100 per cent stake in LIC.

Press Trust of India  |  New Delhi 

Private sector's share in LIC's portfolio plunges to 16-year low

announcement that insurance behemoth will be listed was well received by market participants who said this will be "of the decade" akin to the listing.

Finance Minister Nirmala Sitharaman on Saturday said Life Insurance Corporation (LIC) will be listed as part of the government disinvestment initiative.

A "highlight of the budget is the IPO, which is akin to the listing for Indian capital markets, and will be of the decade," Vijay Bhushan, President, Association of National Exchanges Members of India (ANMI) said.

According to Krishna Kumar Karwa, Managing Director, Emkay Global Financial Services, the will be a big positive for corporate governance and transparency and will open up one more avenue for fund raising for the government over the years.

Metropolitan Stock Exchange, Interim CEO, Balu Nair said: "The LIC listing will be eagerly awaited by investors and will provide huge fillip to capital raising through the primary market." The government proposes to sell a part of its holding in LIC through an initial public offer, Sitharaman said while presenting Budget 2020-21.

"The government will sell part of LIC through its listing in the stock market which is also a positive trigger for the market," Amit Gupta, CO-Founder and CEO, TradingBells.

Jaideep Hansraj, MD and CEO of Kotak Securities said listing of LIC would help bridge a gap in the Fiscal Deficit for FY21.

Currently, the government owns the entire 100 per cent stake in LIC.

shares were listed in December last year.

First Published: Sat, February 01 2020. 16:45 IST