Centre to complete divestment of 5-6 PSUs; LIC IPO may delay till June 2022

Sources from the ministry said the government is yet to arrive at the valuation of LIC and while there is target to arrive at valuation by December.

Published: 18th November 2021 07:57 AM  |   Last Updated: 18th November 2021 07:57 AM   |  A+A-

PSU disinvestment, stake

For representational purposes (Express Illustration|Tapas Ranjan)

By Express News Service

NEW DELHI:  Even as the government is confident of complete the divestment of 5-6 public sector units, they are yet to arrive at the valuation of LIC IPO and sources in the finance ministry fear it may not happen this fiscal year.

"After 19 years, we would possibly see 5-6 privatisations this year. Not only Air India but BPCL is in due diligence stage. BEML, Pawan Hans, NINL, these are the transactions in which financial biddings can take place in December-January," Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), said at the CII's Global Economy Policy Summit. 

Talking of the LIC IPO, he added that the government is working hard for it. "On LIC IPO, we are working very hard. For the capital market, it will be a very big event in the first quarter of 2022," Pandey said, adding that they are aiming at IPO of LIC to hit the market in fourth quarter of FY22.

However, sources from the ministry said the government is yet to arrive at the valuation of LIC and while there is target to arrive at valuation by December, there are many technical challenges, which is delaying the process.

"The intent is to come up with the IPO by March end, but we fear this may not happen this fiscal. Till date no consensus is on the embedded value. However when said that, the process will be completed by close to the deadline, maximum by June end," a source said.

The government has set disinvestment target of Rs 1.75 lakh crore for FY22. Presenting the Budget, the finance minister had said that strategic sale of IDBI Bank, BPCL, Shipping Corporation, Container Corporation, Neelachal Ispat, Pawan Hans, Air India, among others, would be completed during the year.


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