Bharat Petroleum: LIC’s IPO was listed on Tuesday with a fall of 8 to 9 percent in the stock market. A report claimed that after seeing the condition of LIC, the government changed its plan to sell its entire stake to another government company. Now the government is planning to sell its part stake.
Bharat Petroleum: LIC The IPO of the country’s largest insurance company Life Insurance Corporation (LIC) was listed in the stock market on Tuesday. Listed with a discount of 8 to 9 percent, this IPO did not show any miracle and at the end of trading the stock closed with a huge drop. All kinds of memes were trending on LIC’s IPO yesterday.
Mood changed after selling BPCL shares
Seeing the poor condition of LIC during the listing in the stock market, the government seems very cautious. According to Reuters, seeing the bad condition of LIC’s stock, the government has changed its mood on selling the shares of Bharat Petroleum Corporation (BPCL).
Plan to sell 20-25 percent stake
The report quoted officials as claiming that the government is now planning to sell 20-25 percent stake in Bharat Petroleum. Earlier the government had planned to raise $ 8 to 10 billion by selling its entire stake of 52.98%. Now on the basis of the changed plan, it is being considered to invite bids. The talks are still in the initial stage.
Got three expressions of interest
Three Expression of Interest (EOI) have been received for Bharat Petroleum. One of these proposals has been made by industrialist Anil Agarwal’s Vedanta Group. Apart from this, Apollo Global and Eye Skyward’s capital unit Think Gas are included.
conversation at initial stage
Right now, the talks regarding the stake in Bharat Petroleum are at an early stage. In such a situation, this deal is likely to happen only in the next financial year. Going back on selling the entire stake of BPCL is a sign of slow progress in the government’s privatization policy.
Finance Minister had said this thing
Significantly, in 2020, Finance Minister Nirmala Sitharaman had talked about the plan to privatize most government companies including banks, mining companies and insurance companies. However though this was not possible.
Let us tell you that on Tuesday, the listing of LIC’s shares in the stock market took place with a fall of 8 to 9 percent from the issue price. It was listed at Rs 872 per share on BSE and Rs 867.20 on NSE. The stock closed at Rs 873 at the end of trading.
