The government is considering further reducing its stake in insurance giant LIC through a follow-on public offering (FPO) in the next financial year. At present, the government holds 96.5 per cent stake in Life Insurance Corporation of India (LIC). The government had sold 3.5 per cent stake in the company through an initial public offering (IPO) in May 2022 in the price range of Rs 902-949 per share.
The government received about Rs 21,000 crore from this share sale. Financial Services Secretary M Nagaraju on Monday said the public issue of LIC will have to be brought in gradually. We have asked DIPAM to look at the possibility of reducing stake in LIC.
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PFC-REC may merge
Government power sector lender Power Finance Corporation (PFC) and its subsidiary REC may be merged. Its proposal has been placed in the budget. The final decision will be taken at a higher level. In March 2019, PFC had bought a majority stake in REC for Rs 14,500 crore to the government.
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