The shares of one of the most profitable publicly owned companies, LIC, rose in the intraday trading session on Wednesday, July 24. This came to pass after the Union Budget presented on July 23 laid out its disinvestment plan for the fiscal year.
Disinvestment Target: Rs 50,000
Disinvestment has been one of the cornerstones of this government, as it looks to get away from 'the business of business'. This is the process by which state-owned undertakings are sold to private entities.
One of the biggest moves in this direction in recent memory was the complete private takeover of the former flag carrier Air India, which was transferred to the Tata Group, the airline's 'original owner'.
LIC debuted on the share markets in 2022. The company, however, is yet to comply with the market regulator, SEBI's norm of selling 25 per cent of its equity to the public. | Representative Image/File
When it comes to the Life Insurance Corporation or LIC, it is one of the Navaratna companies. It is one of the most profitable companies that is run by the Indian government.
The company has made a net profit of Rs 40,676 crore in the recent past. In a move to divest or disinvest from the company, it was listed on the equity markets.
LIC debuted on the share markets in 2022. The company, however, is yet to comply with the market regulator, SEBI's norm of selling 25 per cent of its equity to the public.
In fact, the Mumbai-based company was given a year-long exemption; however, it has to comply with the norms before the expiry of the exemption.
LIC Shares Zoom
Coming to the government's disinvestment goals, the government has estimated its disinvestment to be worth Rs 50,000 crore for 2024-25.
The company shares rose in the intraday trading session on July 24. |
This is higher than the previous fiscal year's actuals, when the government managed to sell stakes worth Rs 33,123 crore. The government is estimated to meet 54.3 per cent of its disinvestment target this year.
The LIC shares have steadily risen over the span of the trading activities on July 24. The share price surged past gains of 3 per cent at the halfway mark of the day's trade.
At 13:16 IST, the company shares gained 3.71 per cent or Rs 40.30 in value, climbing to Rs 1,126.95 per share.
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