Hope to close BPCL stake sale, LIC IPO by March

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LIC’s initial public offer (IPO), which can be the biggest ever IPO in India, is anticipated in March 2022. Having completed the privatization process of Air India, the govt. is now focused on completing the sale process of BPCL. It also plans to maneuver fast on the listing of insurance Corporation (LIC).

In an interview with FE, department of investment and public asset management (DIPAM) secretary Tuhin Kanta Pandey said he’s hopeful of those two big-ticket transactions materializing by March 31, 2022.LIC’s initial public offer (IPO), which can be the biggest ever IPO in India, is predicted in March 2022.LIC’s initial public offer (IPO), which can be the biggest ever IPO in India, is predicted in March 2022.

While the valuation of the insurer is going to be known closer to the listing, it’s believed to be worth Rs 8-11.5 lakh crore, meaning a tenth stake sale could fetch the govt around Rs 80,000-1,00,000 crore. Accounting transition is additionally occurring (restating books of accounts in compliance with the businesses Act).

So, both BPCL privatization and LIC IPO are crucial if the govt. has got to reach near the FY22 disinvestment target. Air India had debt and liabilities of roughly Rs 1 lakh crore, of which the govt. From the non-core assets, the govt.

would soon start the strategic sale of Air India transportation Services (AIATS), which provides airport ground handling services at Indian airports, Pandey said. “AIAHL will issue bonds to clear a variety of the immediate liabilities like unpaid fuel bills,” Pandey said, adding that exact amount and other details would be discovered in two months.

“In some cases, the govt. As is known, last week the Tata Group won the bid for AI through a special purpose vehicle, Palace Pvt Ltd. Tatas will retain all employees of Air India for one year from the close of the transaction and can offer VRS within the second year.

AI has over 12,000 employees — two-thirds of which are permanent and also the balance, hired on a contractual basis; Air India Express features a staff strength of over 1,400. Within the subsequent five years, about 5,000 permanent employees are retiring.

“We have said that VRS is as per highest package adhering to the foundations of the department of public enterprises,” Pandey said.

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