New Delhi: Union Cabinet on Monday gave its approval to bring the IPO of the country’s largest insurance company LIC. However, a decision is yet to be taken about when this IPO will come. After this approval of disinvestment, now a committee headed by Union Finance Minister Nirmala Sitharaman will take a decision regarding the issue size and price of this IPO. Apart from this, the committee will also decide when to bring the IPO. The Department of Investment and Public Asset Management (DIPAM) had appointed actuarial firm Milliman Advisors LLP India in January 2021 this year for its valuation ahead of the IPO. This IPO could be the biggest IPO in Indian corporate history.
The budget amendment to the LIC Act has been notified and now the actuarial firm may finalize its embedded value soon. The current NAV (Net Asset Value) of LIC under the Embedded Value Method also includes the present value of future gains. On Monday, July 12, a senior official informed that the Cabinet Committee on Economic Affairs had approved the proposal of LIC’s IPO last week. A decision is yet to be taken on how much stake the government will disinvest.
