Saturday, October 24, 2020
Home Business LIC News LIC IPO: RFP soon to appoint actuary to determine shareholder value

LIC IPO: RFP soon to appoint actuary to determine shareholder value


The Department of Investment and Public Asset Management (DIPAM) will soon issue a Request for Proposal (RFP) to appoint an actuary for determining the Indian Embedded Value (IEV) for Life Insurance Corporation of India.

The IEV is a measure of the consolidated value of shareholders’ interest in the life insurance business within the meaning of the Insurance Act, 1938, and applicable IRDAI regulations.

“IEV is one of pre-condition of the IPO for LIC and that needs to be determined by an independent actuary,” a top Finance Ministry official told BusinessLine.

The official also said this is one of the processes being finalised along with other requirements for IPO The official did not rule out the possibility of the IPO being shifted to the next fiscal.

Shareholders’ interest

 

IRDAI regulations require an applicant company to file the ‘Embedded Value’ before an IPO. The valuation report needs to be prepared by an independent actuary and peer reviewed by another professional.

No extension for BPCL bid

The official also hinted that there may not be any further extension for submitting the Expression of Interest (EoI) to buy a controlling stake in Bharat Petroluem Corporation Ltd (BPCL).

“I don’t see further extension for submitting the EoI to buy Government’s stake in BPCL,” the official said. The government plans to sell all its nearly 53 per cent stake in BPCL (except BPCL’s 61.65 per cent stake in Numaligarh Refinery). The fourth extension ends on November 16.

The official said even the buyer for strategic disinvestment in Numaligarh has been identified and it is one of the Central Public Sector Enterprise, still, there is no plan to complete the process independently or before BPCL. “We do not want to create disruptions here as BPCL already initiated some project in the refinery,” he said while emphasising that there will be co-ordinated effort.

Overall strategic disinvestment

The official said the strategic disinvestment plan is back on track. “There have been delay on account of the pandemic, but now that delay is not expected to be prolonged,” he said. Strategic sale of Central Electronics Ltd and two plants (Salem and Bhadrawati) are in an advanced stage.

He also said the process of issuing EoIs for strategic sale of Bharat Earth Movers Ltd (BEML), Neelachal Ispat Nigam Ltd (NINL), CONCOR, Shipping Corporation and Pawan Hans is on and expected to be released soon.

Also read: LIC expects good growth this fiscal



Source link

www.thehindubusinessline.com

Most Popular

ICICI Lombard General registers 35% increase in Q2 profit

Private sector ICICI Lombard General Insurance reported a 35 per cent increase in net profit to ₹415.74 crore in the second quarter this...

ICICI Lombard Q2 net rises 35%

ICICI Lombard reported underwriting profits in fire, motor and the miscellaneous retail segment in the second quarter.ICICI Lombard General Insurance on Friday posted...

ICICI Lombard General Insurance Q2 net rises 35%

The non-life insurer also saw an improved combined ratio and a surge in gross direct premium income (GDPI) in the quarter under review.ICICI...

Bombay HC’s Nagpur bench quashes govt cap on non-Covid treatment prices for 20% reserved beds

Written by Vivek Deshpande , Tabassum Barnagarwala | Nagpur | Updated: October 24, 2020 12:38:16 am The government had put restrictions on treatment...

Recent Comments