Modi Govt likely to close BPCL disinvestment by 2nd half of financial year, launch LIC IPO in last quarter: DIPAM secretary Tuhin Kant Pandey

After Tata-Air India deal, the government is set to close disinvestment of BPCL (Bharat Petroleum Corporation Limited) in second half of this financial year and may also launch IPO of LIC in the last quarter.

Tata Sons bagged Air India in one of the important disinvestment stories in the beginning of this month. Source: PTI/Reuters

After Tata-Air India deal, the government is set to close disinvestment of BPCL (Bharat Petroleum Corporation Limited) in second half of this financial year and may also launch IPO of LIC in the last quarter. This was shared by Tuhin Kant Pandey, Secretary, Department of Investment & Public Asset Management (DIPAM).

Speaking to news agency ANI, DIPAM secretary Pandey said, "Govt of India expects to complete disinvestment of BPCL (Bharat Petroleum Corporation Limited) in second half of this financial year & hopes to launch IPO of LIC in the last quarter."

Earlier, in a development related to BPCL privatisation, it was learnt that capital market regulator SEBI had hinted at not giving exemption to the company acquiring BPCL from making mandatory open offers for Petronet LNG Ltd and Indraprastha Gas - share purchases.

TRENDING NOW

See Zee Business Live TV Streaming Below:

An official had told news agency PTI that the capital market regulator is unlikely to give exemption to the company acquiring BPCL from making mandatory open offers for Petronet LNG Ltd and Indraprastha Gas - Share purchases which will be countered by other promoters of the two firms such as GAIL to save from going private.

The BPCL holds 12.5 per cent of the shareholding in India's largest liquefied natural gas importer, Petronet, and a 22.5 per cent stake in city gas retailer, IGL. It is a promoter of both the listed companies and holds board positions.

Govt of India expects to complete disinvestment of BPCL (Bharat Petroleum Corporation Limited) in second half of this financial year & hopes to launch IPO of LIC in the last quarter: Tuhin Kant Pandey, Secretary, Department of Investment & Public Asset Management (DIPAM) (14.10) pic.twitter.com/gabRyx77eS

— ANI (@ANI) October 15, 2021

About the LIC IPO, it was reported that the government may not be required to amend any legislation to allow foreign participation in the proposed initial share sale of insurance giant Life Insurance Corporation of India (LIC), sources said.

"Foreign participation would be allowed as per the listing norms of the Securities and Exchange Board of India (SEBI) and the extant sectoral FDI guidelines," Sources have told PTI.

Tata Sons bagged Air India in one of the important disinvestment stories in the beginning of this month. The Tatas emerged as the final winner of this Rs 18,000-crore deal, which saw the Tatas retaining Air India after 68 years. As part of the deal, Tata Sons will pay Rs 2,700 crore in cash payment to the government, while a debt of Rs 15,300 crore will be passed on to the company, as per Zee Business research team. This deal is expected to take final shape by December 2021.

TAGS: