The finance ministry is keeping an eye on global market conditions and whether they warrant deferring the initial share sale of the state-run Life Insurance Corporation (LIC). It is firming up a long-term, five-year plan to divest up to 25% of its equity in the firm. That may mean the initial sell-off of 5% being followed up with a so-called FPO or follow-on public offer of 5-10% more within a year.
The government on February 13 filed the draft red herring prospectus (DRHP) to sell 5% of its equity stake in LIC in March while allowing participation of all types of institutional and retail investors. “After the IPO, which has been scheduled this month, government may gradually reduce its shareholding in LIC depending on its disinvestment targets and market appetite,” an official said.
Complete News Source : Hindustan Times
