Government may go ahead with privatization of insurance companies after LIC IPO: Report
Preparation for privatization of insurance companies
According to a report in the media, the government is waiting for the quarterly results to come out and the listing of LIC, after which the process of privatization of one of the three government general insurance companies will start.
LIC IPO (LIC IPO) post-government privatization (privatisation) may take another step in the direction of According to a report by Mint, the government general insurance companies (general insurance companies) may start the pre – sale process soon to complete the privatization this year . According to the report, after the IPO of LIC, the government will start the process of identifying the company out of the three companies which can be privatized. It has been said in the report that this process can start after the quarterly results of the companies. According to the report, by then LIC would also have been listed in the market. National Insurance, United India Insurance and Oriental India Insurance are included in the 3 government general insurance companies of the country.
Which company can be privatized
The report states that United India Insurance has incurred a loss of Rs 1485 crore in 2019-20. However, due to its market share, insurance products and nationwide reach, the company is considered best suited for privatization. Its loss has come down to Rs 985 crore in the financial year 2021 and it is expected to decrease further. On the other hand, there is also speculation that NITI Aayog may take forward the proposal of United India Insurance. A group of ministers will take the final decision on this. Earlier, the government’s plan was to get these three companies listed in the market, although this plan could not go ahead.
Good response to LIC IPO
LIC’s issue has got a good response so far amid the fall in the stock market and uncertainty in foreign markets. With a size of about 21 thousand crores, LIC’s IPO is the largest IPO in the country so far. The issue is fully subscribed in the first 2 days itself. Out of its 5 investment categories, 3 are fully subscribed so far. At the same time, two categories are also expected to be fully subscribed soon. Investors in the issue will be able to apply till May 9. The stock will be listed on May 17. Most of the brokerage houses in the country have given investment advice in the issue.