Month: September 2021

This Company Will Soon Be Paying A Good Dividend Of Rs. 36/ Share

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Investment

oi-Roshni Agarwal

|

This company from the personal care segment has a good dividend track record and has been consistently paying dividends for the last 5 years. In an exchange filing, the company announced the outcome of its board meet held on august 24, 2021 and said that its audited financial results for the financial year ended June 30, 2021 have been approved.

This Company Will Soon Be Paying A Good Dividend Of Rs. 36/ Share

Alongside, the board also recommended a dividend of Rs. 36 per Equity Share (Nominal Value of Rs. 10/- each), for the Financial Year ended June 30, 2021. The dividend shall be paid between November 27, 2021 to December 17, 2021, on approval of the Members at the 37th Annual General Meeting, said the filing. Note the dividend herein recommended is the final dividend pay-out.

If you could guess it, we here are referring to Gillette India Ltd., i.e. the country’s popular fast moving consumer goods (FMCG) company that owns leading brands like Gillette and Oral B. The company is also socially active and supports initiatives like education of underprivileged children in the country through programmes such as P&G Shiksha.

For the year ending June 2021, the company in all has declared an equity dividend of 1190 percent that amounts to Rs. 119 per share. Here is the quick break-up of the dividend for the June ended financial year:

Dividend announcement date Ex-date Dividend type Dividend % Dividend in Rs.
27.08.2021 15.11.2021 Final 360 36
27.04.2021 12.05.2021 special 500 50
28.02.2021 11.02.2021 Interim 330 33

Considering the above dividend, dividend yield for the counter turns out to be 2.0076% taking into account the last traded price of Rs. 5924.15.

Past dividend history of Gillette India

Announcement Date Ex Dividend Date Dividend (%) Dividend Type
26/08/20 17/11/20 490 Final
22/08/19 18/11/19 250 Final
07/02/19 15/02/19 190 Interim
23/08/18 20/11/18 230 Final
24/08/17 06/11/17 100 Final
06/05/17 17/05/17 1540 Special
23/08/16 22/11/16 200 Final

Should you buy the Gillette stock for bagging a good dividend of Rs. 36/ share?

To be eligible for the dividend, you should be holding the shares of the scrip as on record date after which the stock turns ex-dividend that is the shareholders who buy the share on the ex-dividend date or post that will not be eligible for the declared dividend. Now as the ex-date for Gillette is still far away, you can give a thought for the same.

Note even though company has been consistently paying dividend, future dividends are not guaranteed as dividends are announced at the discretion of the firm and there remains no contractual obligation to declare/pay the same. So, for similar future stream of payment you surely cannot take position into the stock.

Also, companies paying out good dividends may be doing so, being mature players in their respective industries’, with limited options to park cash. Hence investor should not solely invest in a stock for good dividend or dividend yield, but look at these in conjunction with other metrics such as Return on Equity (ROE) and Return on Capital Employed (ROCE).

Other financials of Gillette India:

M-cap- Rs. 19314 crore

P/E TTM- 62.23

Sectoral P/E- 75.87

Book value per share- 242.14

P/B-24.28

52W Low/high- Rs. 5218/ Rs. 6275

RoE-39.33

GoodReturns.in



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‘Automation may lead to slack in labour market’

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Reserve Bank of India Governor Shaktikanta Das said a major challenge to inclusiveness in the post-pandemic world would come from the fillip to automation provided by the pandemic even as he underscored the need to guard against any emergence of digital divide as digitisation gains speed.

“Greater automation would lead to overall productivity gain, but it may also lead to slack in the labour market. Such a scenario calls for significant skilling/ training of our workforce.

“We also need to guard against any emergence of digital divide as digitisation gains speed after the pandemic,” said Das at the 48th National Management Convention of the All India Management Association (AIMA).

Hiring of professionals

Referring to the demand for professional human resources trained in science, technology, engineering and mathematics (STEM) rising briskly, the Governor noted that major technology-based firms have expressed their intention to hire many new professionals with skills in these areas.

In the short term, the supply of such a workforce cannot be increased by the traditional educational system and, thus, there is a need for close involvement of corporates in the design and implementation of courses suitable to the changing industrial landscape, he said.

Das observed that technology adoption, which was earlier limited to core sectors, has now permeated to several other areas — education, health, entertainment, retail trade and offices.

The pandemic has also caused disruptions and induced reallocation of labour and capital within and across sectors. “The firms that were quick to adopt technology and were flexible in working from off-site are attracting more capital and labour.

“On the other hand, firms that were not up for the challenge and competition will have to leave the space for the more dynamic ones,” said the Governor. He opined that these forces of ‘creative destruction’ are expected to boost productivity by encouraging greater competition, dynamism and innovation in several sectors of the economy.

Lasting damage

Das noted that the pandemic has affected the poor and vulnerable more, especially in emerging and developing economies.

“Daily wage earners, service and informal sector workers were badly hit. Their employment and income opportunities were curtailed.

“The lasting damage inflicted by the pandemic on these segments is of serious concern for inclusive growth,” said the Governor.

In the medium- to long-run, both efficiency and equity will greatly matter for sustainable growth and macroeconomic performance, he added.

Das mentioned that within countries, contact-intensive service sectors employing large number of informal, low-skilled and low-wage workers have been hit harder due to the pandemic.

“In several emerging and developing economies, lack of healthcare access has disproportionately affected the family budget of the poor.

“Even education, which was provided online during the pandemic, excluded the low-income households due to the lack of requisite skills and resources. Overall, there are evidences across countries that the pandemic may have severely dented inclusivity,” he said.

Innovation

Das felt that income and job creation with digitalisation and innovation can bring about a new age of prosperity for a large number of people. “As we recover, we must deal with the legacies of the crisis and create conditions for strong, inclusive and sustainable growth.

“Limiting the damage that the crisis inflicted was just the first step; our endeavour should be to ensure durable and sustainable growth in the post-pandemic future,” he said.

The Governor emphasised that restoring durability of private consumption, which has remained historically the mainstay of aggregate demand, will be crucial going forward. More importantly, sustainable growth should entail building on macro fundamentals via medium-term investments, sound financial systems and structural reforms.

Towards this objective, Das underscored that a big push to investment in healthcare, education, innovation, physical and digital infrastructure will be required.

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Beware of trojan malware attack, MeitY warns customers of 27 major banks

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Ministry of Electronics and Information Technology’s Indian Computer Emergency Response Team (CERT-In) on Tuesday notified that customers of nearly 27 Indian banks including major public and private banks are at the risk of attack from a new banking trojan malware masquerading as income-tax refund related link.

Modus operandi

The victims first receive an SMS link to a phishing website, disguised as the Income Tax Department website, they are then asked to fill in a few personal details before being sent a malicious APK file to be downloaded to complete verification. On opening the app, the victim is asked to grant permissions to access SMS, call logs and contacts.

If the victim doesn’t allow permission to any of these, the same form appears on opening the app asking for data including full name, PAN, Aadhar number, address, date of birth, mobile number, email address and financial details like account number, IFS code, CIF number, debit card number, expiry date, CVV and PIN, the federal cybersecurity agency noted.

Also read: Chinese hackers target UIDAI, Times Group, report says

Once these details are entered, the application states that there is a refund amount that could be transferred to the user’s bank account.

“When the user enters the amount and clicks ‘Transfer’, the application shows an error and demonstrates a fake update screen. While the screen for installing the update is shown, Trojan in the backend sends the user’s details including SMS and call logs to the attacker’s machine,” CERT-In said.

“These details are then used by the attacker to generate the bank specific mobile banking screen and render it on the user’s device. The user is then requested to enter the mobile banking credentials which are captured by the attacker,” it added.

These attacks are likely to jeopardise the privacy and security of sensitive data ultimately resulting in large scale attacks and financial frauds.

Drinik suspected

Claimed to be done using Drinik malware, the earlier version of this malware came in 2016 as a primitive SMS stealer and has recently evolved into a banking trojan demonstrating a phishing screen persuading users to enter sensitive banking information.

“Such trojans have become very common lately. But something like Drinik which has been dormant since 2016 can be tracked easily even using a Google Play Protect. Personally, I haven’t come across any strong active version of this malware recently. Also, consumers need to be wary that any legitimate government website will use ‘.gov.in’ in the link, anything else is not allowed in India for government websites,” Sunny Nehra, Admin, Hacks and Security told BusinessLine.

“These days people blindly give permissions to random apps to access personal data on phones without even thinking if that app really needs access to say your camera, gallery, phone book and so on. It’s good that MeitY is spreading awareness and updating users about such threats,” he added.

Kapil Gupta, Co-founder, Volon Cyber Security said,“Along with Drinik, another new Android malware ‘Elibomi’ has also been targeting taxpayers, luring them by offering tax filing service in a similar way. This malware too is getting delivered by SMS text phishing attack, pretending to come from income tax department. Users are recommended to not click on any unverifiable links from text messages. They should use reliable security application in mobile to protect against malicious applications”

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Coffee break: Shankar Sharma steps back from First Global

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After a long stint in the stock markets, First Global vice chairman Shankar Sharma is moving on to the second innings of his life. This time it is to build a consumer brand in the coffee company, Caffè di Artisan.

Shankar’s wife Devina will continue to run First Global, which has evolved into an investment management firm.

“I would continue to run First Global. As you are well aware, I have always been the Founder, Chairperson & Managing Director of the First Global group. Therefore, nothing really changes,” Devina Mehra, Founder, Chairperson & MD, said in a note to clients.

The consumer brand in the coffee business requires full-time attention and hence Shankar is going to devote all his energy to it.

In 1989, Sharma quit Citibank in his mid-twenties and founded First Global with a seed capital of ₹5,000. Devina spearheaded the company’s global foray 1999-2000 onwards making First Global the first Asian (ex-Japan) member of the London Stock Exchange & the NASD. First Global today has presence in major markets such as Asia, UK, US. In India, its entities are First Global Stockbroking Pvt. Ltd, First Global Commodities Pvt. Ltd, First Global Finance Pvt. Ltd. and First Global Securities Pvt. Ltd.

However, Shankar Sharma said:  ‘The news is misleading and inaccurate.”

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LIC Jeevan Lakshya For A Promising Future Of Your Child

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Personal Finance

oi-Kuntala Sarkar

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LIC Jeevan Lakshya policy is an endowment and non-linked policy which has similar features available in the Kanyadan policy. Kanyadan is related to a daughter’s marriage to the parents. However, this LIC Jeevan Lakshya policy can be utilized for any other purpose like the education cost of the children. At the time of maturity, the policy will give a good lump sum amount to the policyholder or the nominee. The Jeevan Lakshya plan can be taken by anyone who is above 18 years and under 50 years for long-term future benefits. So, this policy must be taken by an adult policy holder’s name, and not under the name of a child. The death benefits of the policy also make this policy significant to the parents which can secure the child’s future.

LIC Jeevan Lakshya For A Promising Future Of Your Child

Premium term and policy Term

The minimum sum assured in the LIC Jeevan Lakshya policy is Rs. 1 lakh, with no maximum limit depending on your income. Premium term for this policy is 3 years less than the total policy term, from a minimum of 13 years to a maximum of 25 years is fixed as the policy term. Hence, if an investor is signing for the policy term of 25 years, then the premium term will be 22 years. The premium can be paid yearly, quarterly, or monthly. The 1st year’s premium will be taxed 4.5% and from the second year, the tax will be 2.25%.

The maturity benefits of the LIC Jeevan Lakshya policy are attractive for the parents for his/her child’s future. If a parent takes this policy after the birth of a child for a 25 years policy term, the lump sum amount will be given by LIC when the child will be of 25 years. This age will eventually vary on the policy term. At that time the money can be utilized for the child’s higher education or marriage. So, it is one of the most popular plans of LIC signed up by parents.

Sum Assured calculation of LIC Jeevan Lakshya (Policy term of 25 years, premium paying term 22 years)

Basic sum assured Death sum assured Yearly premium (1st year) Yearly premium (from 2nd year) Total approximate return at the time of maturity
200000 220000 9264 9064 520000
500000 550000 22639 22151 1300000
1000000 1100000 45277 44302 2600000

The calculation is done by Goodreturns.in through the All In One Calc mobile app by LIC.

Death benefits make the policy unique

The death benefit is another reason behind the policy’s popularity. In case of the death of the policyholder or the parent after signing up, the rest of the premium will not be required to pay. On the other hand, after the death of the policyholder, the nominee will get 10% of the total sum assured every year till the policy term. In case the minimum sum assured is Rs. 10 lakh, then the nominee will receive Rs. 1 lakh every year from LIC. At the time of maturity, 110% of the sum assured will be given by LIC, along with bonus and Final Additional Bonus (FAB). So, even if the parent died before the policy term, the future of the child will be secured. However, the policyholder can take the death benefits and maturity benefits even in installments for 5 or 10 or 15 years. The death benefits make the LIC Jeevan Lakshya policy unique from other policies and can be differentiated largely from the LIC Jeevan Labh policy.

Additional benefits

If you add term rider premium with the basic policy with a minimum sum assured of Rs. 10 lakh, in case of the policy holder’s natural death, a Rs. 10 lakh will be paid. This will be the amount of your sum assured. In case of accidental death, the same amount will be paid additionally with the accidental benefit rider. There are also term insurance riders and critical illness riders a policyholder can take.

You can also take a loan against the policy after 2 years and also can surrender the policy after 2 years. Tax benefits will be given on death or maturity benefits under section 10(10D) and on premium the deduction will be as per ITR rules. NRIs too can sign up for the plan even without visiting India.

Story first published: Thursday, September 23, 2021, 13:03 [IST]



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Reserve Bank of India – Tenders

Tenders

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SCHEDULE OF TENDER (SOT)

Tender No. RBI/CentralOffice/DBS/1/21-22/ET/168
Mode of Tender e-Tender Online submission of Part I – Technical Bid and Part II – Price Bid through https://www.mstcecommerce.com/eprochome/rbi

The intending bidders are required to submit their offer electronically through above e-tendering portal only.

No physical technical/price bid shall be accepted.

Date of NIT and e-tender available to parties to download from RBI website and MSTC portal September 23, 2021
Estimated annual value of contract –
Date of online Pre-Bid Meeting Vendor may submit their queries regarding tender over mail by September 30, 2021, at tagmpe@rbi.org.in
Earnest Money Deposit –

Successful bidder has to submit EMD amount in the form of NEFT

Please Note: – EMD amount will be accepted from successful bidder after award of work.

Amount: Rs.1,00,000/-

EMD amount can be paid through NEFT

A/c. No – 41869229908

IFSC Code:

RBIS0COD001 (5th, 9th and 10th characters are ZERO).

A/c. Name: Reserve Bank of India
Date of Starting of Tender for submission of Technical Bid and Financial Bid 1200 hrs, September 23, 2021
Date of closing of tender for submission of Technical Bid and Financial Bid. 1200 hrs, October 18, 2021
Date & time of opening of Part-I (i.e. Technical Bid) 1600 hrs, October 18, 2021
Part-II Financial Bid: Date of opening of Part II Part II – Financial bid will be opened only for those bidder(s) whose Part I-Technical Bid is found acceptable by DoS, RBI, Mumbai. The date of opening of Financial Bid will be communicated separately to Technically Qualified Bidders

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LIC Housing Finance to offer home loans up to ₹2 crore at interest rates starting from 6.66%

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LIC Housing Finance (LICHFL) on Thursday said it will offer home loans up to ₹2 crore at interest rates starting from 6.66 per cent to borrowers, irrespective of whether they are salaried or professional/self-employed, having a CIBIL score of 700 and more.

Hitherto, the company was offering home loans up to ₹50 lakh at interest rates starting from 6.66 per cent.

Offer period

The company, in a statement, said its offer is available for home loans sanctioned from September 22 to November 30, 2021, provided the first disbursement is availed on or before December 31, 2021.

This interest rate offer is available across all home loan products, it added.

MD & CEO, Y Viswanatha Gowd, said: “By segmenting borrowers with CIBIL score of 700 and more for special rates, irrespective of category of employment, LICHFL aims to cater to a larger base of borrowers.

“This move is in tune with the demand for larger spaces and affordability. We also see a good traction of home loans in this ticket range,” he said.

The company has pegged its processing fee at a maximum of ₹10,000 or 0.25 per cent of the loan amount, whichever is lower for loans up to ₹2 crore.

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3 Types of Income Tax Benefits Under NPS That Tax Savers Need To Know

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Income tax benefits under Section 80CCD (1)

Contributions made by an individual taxpayer towards the NPS Tier-I account are eligible for a tax benefit under section 80CCD (1). Subscribers who contribute any amount to their NPS account throughout the financial year are eligible for a deduction from their total salary of up to 10% of their basic pay for salaried individuals and 20% of their total income for non-salaried individuals.

For the contributions made by a subscriber or through the employer i.e. as a deduction from salary income, the deductions are applicable under NPS. The deduction allowed under this provision, however, is limited to the total maximum of Rs 1.5 lakh set by Section 80CCE of the Act.

The cumulative amount of deduction allowable under sections 80C and 80 CCD(1) of the Income-tax Act is determined under section 80CCE and consequently, in a financial year, contributions made under section 80C and section 80CCD (1) should not surpass the stated maximum of Rs 1.5 lakh. It’s worth noting that Sections 80C, 80CCC, and 80CCD (1) of the Income Tax Act allow a maximum total exemption of Rs 1.5 lakh.

Income tax benefits under Section 80CCD (2)

Income tax benefits under Section 80CCD (2)

Individuals can claim a tax advantage under 80CCD (2) against the contributions made by their employer towards an NPS Tier 1 account on their behalf. The contributions made by the employer are deductible under Section 80CCD(2) of the Income Tax Act, up to a maximum of 10% of basic pay including Dearness Allowance (DA) for the financial year.

The said deduction is in addition to the deduction for employee contributions and it is not subject to the total maximum of Rs 1.5 lakh set forth in Sections 80CCE and 80CCD (1b). Employer contributions to NPS can be claimed as a ‘Business Expense’ from their Profit & Loss Account up to 10% of salary (Basic + DA). Employers can contribute up to 10% of an employee’s income in an NPS Tier-I account, and up to 14% for central government employees, according to current tax rules.

Income tax benefits under Section 80CCD(1B)

Income tax benefits under Section 80CCD(1B)

The Income-tax Act’s Section 80CCD(1B) enables a deduction of Rs 50,000 in addition to the Rs 1.5 lakh allowed by Section 80CCE. In a financial year, a taxpayer can seek a total of Rs 50,000 as tax breaks under section 80CCD (1b). This tax advantage of Rs 50,000 is in addition to the tax benefits provided under sections 80CCD (1) and 80CCD (2). As a result, if a subscriber has over the Rs 1.5 lakh limit under Section 80CCE apart from NPS, self- or employer-made contributions to NPS can be used to claim an additional deduction of Rs 50,000 under Section 80CCD (1B). Individual taxpayers can deduct up to Rs 50,000 under Section 80CCD (1B) for PF contributions of Rs 1.5 lakh and NPS contributions of Rs 50,000 made by self or have deducted from their income by their employer.

Tax benefits under NPS apart from section 80CCD

Tax benefits under NPS apart from section 80CCD

Along with the tax breaks provided under Section 80CCD, subscribers can withdraw funds from their NPS tier I account partially before reaching the age of 60 for emergency causes specified under NPS. The amount withdrawn up to 25% of the contribution made by the subscriber is tax-free.

The amount contributed for purchasing an Annuity is also tax-free. The annuity income you receive is subject to taxation in the subsequent years. Once the subscriber reaches the age of 60, up to 40% of the overall corpus withdrawn in a lump sum is tax-free.

For example, if you have a total corpus of 20 lakhs in your account at the age of 60, you can withdraw 40% of the entire corpus, without paying any tax which is Rs 8 lakhs. Hence, if you withdraw 40% of your NPS corpus as a lump sum, and make an annuity purchase using the remaining 60% of the corpus, you will not be subject to taxation.



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1 NBFC, 1 Pharma Stock To Buy For Quick Gains, As Suggested By HDFC Securities

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1. Shriram Transport:

HDFC Securities has raised its bets on this stock from the finance-leasing and hire purchase segment, Shriram Transport Finance and set the target price of Rs. 1634, implying upside of 19 percent from the last traded price of Rs. 1372. The scrip has been recommended for an investment horizon of 2 quarters or 6 months.

HDFC Securities’ take:

The company’s major AUM i.e. over 90 percent comprises used CV financing. Also, with operations spanning 4 decades, the company has expanded its footprint in semi-urban and rural financing. Going ahead owing to reduced EMI pressure as well as replacement demand in the offing due to the implementation of the scrappage policy, demand for used CV financing will be somewhat better.

Some of the watch-outs will be collecting efficiency and asset quality situation. Also, management hold the view that good monsoon and festive demand will boost up the demand in the next 6 months. “Over dependence on financing used vehicles and rural economy brings concentration risk. The possibility of a third Covid wave and fresh lock downs could hurt the business. Demerger related news can keep the stock price volatile”, adds the report.

The brokerage previously also recommended its buy on the scrip for bull case target of Rs. 1503 on March 30 for a 2 quarter period. Now it again continues with its ‘Buy’ view on Shriram Transport.

Valuation & Recommendation:

The scrip’s average RoE of the last 10 years stand at 16%. The brokerage expects from FY22 things will be normalizes and there will be an uptick in the earnings. “We have envisaged 9% CAGR for NII and 23% CAGR for Adjusted Net Profit over FY21-23E, while AUM is estimated to grow at 9% CAGR over same time frame. NIMs may improve with decline in CoF and reduction in excess liquidity. With the current stock of provisions at 7.5% of AUM, we expect normalised provisioning from H2FY22 on the back of resumption of economic activity and improving collections and recoveries. RoAA is estimated at 2.6% in FY23E compared to 2% in FY21. The stock is trading at a significant discount to Cholamandalam and Sundaram Finance, which could reduce going forward given the company’s growth and asset quality trajectory. We believe that investors can buy STFC at LTP (1.4xFY23E ABV) and add more at Rs.1198 (1.25xFY23E ABV) for the base case fair value of Rs.1488 (1.55xFY23E ABV and for the bull case fair value of Rs.1634 (1.7xFY23E ABV) over the next two quarters”, says the brokerage report.

Stock Current price Target price Potential upside
Shriram Transport Rs. 1372 Rs. 1634 19%

2. Suven Life Sciences:

2. Suven Life Sciences:

The brokerage is bullish on Suven Pharma and has set a target price of Rs. 117, an upside of 22 percent considering the last traded price of close to Rs. 96 per share. Note this is a positional call by the brokerage for a horizon of 3 months.

Note positional recommendations are given based on technical analysis of the stock by the company’s research experts.

Technical observation for the Suven Life Sciences:

The stock is in an intermediate uptrend and has been hitting higher tops and higher bottoms for some months now. After being in a range of Rs. 82-90, the stock broke out of its range on September 21 owing to above average volumes. Technicals for the stock are providing positive signals as the stock trades above the 20 day and 50 day SMA. “Weekly momentum indicators like the 14-week RSI have bounced back from oversold levels and are in rising mode now. This augurs well for the uptrend to continue. With the intermediate technical setup too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy”, adds the brokerage.

Stock Current price Target price Potential upside
Suven Life Sciences Rs. 96 Rs. 117 22%

Disclaimer:

Disclaimer:

The stocks listed out are based on fundamental and technical analysis and taken from brokerage report. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.

GoodReturns.in



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Govt may block Chinese investment in LIC IPO as company a ‘strategic asset’, BFSI News, ET BFSI

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The government wants to block Chinese investors from buying shares in Life Insurance Corp (LIC), underscoring tensions between the two nations.

State-owned LIC is considered a strategic asset, commanding more than 60% of India’s life insurance market with assets of more than $500 billion.

India has sought to limit Chinese investment in sensitive companies and sectors, banned a raft of Chinese mobile apps and subjected imports of Chinese goods to extra scrutiny.

“With China after the border clashes it cannot be business as usual. The trust deficit has significantly widen(ed),” a government official said, adding that Chinese investment in companies like LIC could pose risks, according to a report.

FDI in IPO

Meanwhile, the government is mulling allowing foreign direct investment (FDI) in LIC, a move that would help overseas investors take part in the company’s proposed mega IPO, sources said.

The proposal is under discussion between the Department of Financial Services and the Department of Investment and Public Asset Management (DIPAM).

According to the current FDI policy, 74 per cent foreign investment is permitted under the automatic route in the insurance sector. However, these rules do not apply to the Life Insurance Corporation of India (LIC), which is administered through a separate LIC Act.

Change of rules

Govt may block Chinese investment in LIC IPO as company a 'strategic asset'

As per Sebi rules, both FPI and FDI are permitted under public offer. However, sources said since LIC Act has no provision for foreign investments, there is a need to align the proposed LIC IPO with Sebi norms regarding foreign investor participation.

The Cabinet had in July approved the initial public offering (IPO) of LIC.

The DIPAM had in January appointed actuarial firm Milliman Advisors LLP India to assess the embedded value of LIC ahead of the IPO, which is touted to be the biggest public issue in Indian corporate history.

The government expects to come out with the LIC IPO by the end of the current fiscal. Up to 10 per cent of the issue size would be reserved for policyholders.

The government has already brought in the required legislative amendments in the LIC Act for the proposed IPO.

Deloitte and SBI Caps have been appointed as pre-IPO transaction advisors.



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