Budget 2020 announcement that the insurance behemoth, LIC, will be listed has been well received by market participants who said this will be 'IPO of the decade' akin to the Saudi Aramco listing.
The Union Finance Minister, Mrs. Nirmala Sitharaman, announced on Saturday that the Life Insurance Corporation (LIC) will be listed as part of the government disinvestment initiative.
A highlight of the budget is the LIC IPO, which is akin to the Saudi Aramco listing for Indian capital markets, and will be an IPO of the decade,' Mr. Vijay Bhushan, President, Association of National Exchanges Members of India (ANMI) said.
According to Mr. Krishna Kumar Karwa, Managing Director, Emkay Global Financial Services, the LIC IPO 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.
The Metropolitan Stock Exchange, Interim CEO, Mr. Balu Nair said: 'The LIC listing will be eagerly awaited by investors and will provide a 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, Mrs. Sitharaman said while presenting the budget.
'The government will sell part of LIC through its listing in the stock market which is also a positive trigger for the market,' Mr. Amit Gupta, CO-Founder and CEO, TradingBells, said..
Mr. Jaideep Hansraj, MD and CEO of Kotak Securities, said the listing would help bridge a gap in the Fiscal Deficit for FY21. Currently, the government owns the entire 100 per cent stake in LIC. Saudi Aramco shares were listed in December last year.