LIC may buy Rs 30,000 crore of SUUTI's assets

SUUTI has shares in 43 listed and eight unlisted companies.

Union government has asked LIC to buy significant assets of SUUTI, where it holds minority stakes in listed and unlisted companies. Photo: Official website

Life Insurance Corporation of India (LIC) may buy Rs 30,000 crore of Specified Undertaking of the Unit Trust of India (SUUTI) assets, sources told Zee Business.

Union government has asked LIC to buy significant assets of SUUTI, where it holds minority stakes in listed and unlisted companies.

SUUTI has shares in 43 listed and eight unlisted companies. As per the source, LIC may buy shares in Axis Bank, ITC and L&T in which SUUTI holds 11.93%, 11.17% and 8.32% respectively of shares.

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Moreover, the government may sell the SUUTI's assets in two or three parts instead of selling at one go. Thus, LIC has been asked to pick up atleast one-third of SUUTI's overall holdings, a LiveMint report said.

Last week, SUUTI held a meeting with merchant bankers seeking advise on which companies it should exit, as well as the pricing and timing of the sales. It would appoint three bankers for three years to execute its plans.

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Life Insurance Corporation of India (LIC)Specified Undertaking of the UTI (Suuti)Axis Bank ITC L&T Banking & Financial Services