Skip to content
Search

Latest Stories

India allows up to 20 per cent FDI in LIC: Sources

India allows up to 20 per cent FDI in LIC: Sources

INDIA on Saturday (26) permitted up to 20 per cent foreign direct investment (FDI) under automatic route in the IPO-bound Life Insurance Corporation (LIC) to facilitate disinvestment of the country's largest insurer, sources said.

The decision was taken by the Cabinet, chaired by prime minister Narendra Modi.

The government has approved the listing of shares of LIC on stock exchanges with a part-sale of its stake in the insurer and raising fresh equity capital.

Foreign investors may be desirous of participating in the mega IPO. However, the existing FDI policy did not prescribe any specific provision for foreign investment in LIC, which is a statutory corporation established under the LIC Act, 1956.

Since as per the present FDI policy, the foreign inflows ceiling for public sector banks is 20 per cent under government approval route, it has been decided to allow foreign investment of up to 20 per cent for LIC and such other corporate bodies.

To expedite the capital raising process, such FDI has been kept under the automatic route, as in the case of the rest of the insurance sector, one of the sources said.

Setting the stage for the country's biggest-ever public offering, LIC on February 13 filed draft papers with capital market regulator SEBI for the sale of five per cent stake by the government for an estimated Rs 630 billion (£6.3 bn).

The initial public offering (IPO) of over 316 million shares or five per cent government stake is likely in March. Employees and policyholders of the insurance behemoth would get a discount over the floor price.

According to the draft red herring prospectus (DRHP), LIC's embedded value has been pegged at about Rs 5.4 trillion (£54 bn) as of September 30, 2021, by international actuarial firm Milliman Advisors.

Although the DRHP does not disclose the market valuation of LIC, as per industry standards, it would be about three times the embedded value or around Rs 16 trillion (£160 bn).

The LIC public issue is set to be the biggest IPO in the history of the Indian stock market.

(PTI)

More For You

Rachel Reeves

'Our economy isn't broken, but it does feel stuck,' Reeves said, speaking alongside the release of a finance ministry report on business property taxation, known as rates.

Getty Images

Reeves signals possible changes to business property taxes ahead of budget

CHANCELLOR Rachel Reeves said on Thursday she is considering changes to business property taxes to support small firms looking to expand, as part of her plans to boost growth.

Reeves’ comments come ahead of her annual budget on November 26, at a time when concerns about possible tax rises and inflation are weighing on businesses and households.

Keep ReadingShow less
Rachel Reeves

Reeves pledged to keep a tight hold on spending to reduce inflation and borrowing costs amid concerns over Britain’s fiscal outlook.

Getty Images

Reeves urges ministers to back Bank of England on inflation

CHANCELLOR Rachel Reeves has said the government must support the Bank of England in bringing down inflation while also focusing on growth, ahead of a budget later this year that is expected to include tax rises.

Last week, Reeves said the economy was not “broken” as she announced November 26 as the date for her annual budget.

Keep ReadingShow less
Trump urges EU to impose steep tariffs on India and China over Russian oil

US president Donald Trump (R) and Indian prime minister Narendra Modi hold a joint press conference in the East Room at the White House on February 13, 2025 in Washington, DC. (Photo by Andrew Harnik/Getty Images)

Trump urges EU to impose steep tariffs on India and China over Russian oil

US PRESIDENT Donald Trump urged EU officials to hit China with tariffs of up to 100 per cent as part of a strategy to pressure Russian president Vladimir Putin, according to a US official and an EU diplomat.

Trump also encouraged the European Union to slap India with similarly expansive tariffs, said the official, who requested anonymity to discuss private conversations.

Keep ReadingShow less
Modi & Trump

Donald Trump and Narendra Modi shake hands as they attend a joint press conference at the White House on February 13, 2025.

Reuters

US, India look to reset trade talks as Trump plans call with Modi

Highlights:

  • Trump says he will speak to Modi in the coming weeks amid trade talks
  • Modi calls US and India "close friends and natural partners"
  • Trade officials from both countries may restart meetings in September
  • US-India trade reached $129 billion in 2024 with a $45.8 billion US deficit

US PRESIDENT Donald Trump said on Tuesday his administration is continuing negotiations to address trade barriers with India and that he would speak to prime minister Narendra Modi, indicating a possible reset after recent friction.

Keep ReadingShow less
Trump CEOs

Sitting at the centre of a long table, Trump was flanked by First Lady Melania Trump and Microsoft co-founder Bill Gates on one side, and Meta CEO Mark Zuckerberg on the other. (Photo: Getty Images)

At White House dinner, Trump lauds Nadella, Pichai

US PRESIDENT Donald Trump praised Microsoft CEO Satya Nadella and Google CEO Sundar Pichai during a White House dinner with top technology executives on Thursday. The two Indian-American leaders thanked him for his leadership and for policies in the technology and AI sectors.

Trump described the gathering as a “high IQ group,” calling the executives “the most brilliant people.” Sitting at the centre of a long table, Trump was flanked by First Lady Melania Trump and Microsoft co-founder Bill Gates on one side, and Meta CEO Mark Zuckerberg on the other. Pichai and Apple CEO Tim Cook sat across from him, while Nadella was seated toward one end of the table.

Keep ReadingShow less