Source: https://www.businessinsider.in/business/corporates/news/for-lic-ipo-to-succeed-the-life-insurance-giant-has-to-dump-a-lot-of-sick-stocks/articleshow/73889676.cms
For LIC IPO to succeed, the life insurance giant has to dump a lot of sick stocks
FEB 5, 2020, 11:01 IST
- Nearly ₹85 of every ₹100 rupees invested by LIC is either government companies or government securities like bonds.
- In 2010, LIC had to shell out ₹11,500 crore to buy government’s shares of REC, NMDC, and NTPC because other investors weren’t forthcoming.
- LIC also owns stake in sick state-owned companies like MTNL and SAIL.
The Life Insurance Corporation has bailed the Indian government out many times over the years. But it may not be able to do so, as freely, after the IPO proposed by the Finance Minister Nirmala Sitharaman in her budget speech.
Do read the full article at the link given above. It is an interesting analysis.
