2023
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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State Bank
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LIC
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BPCL
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Indian Railways
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Detailed explanation-1: -Given that the government and LIC will hold around 19% each, the successful bidder will be the only entity with veto power. In addition, the buyer, even if it is a consortium, has to hold at least 40% of the paid-up and voting equity share capital of IDBI Bank for five years.
Detailed explanation-2: -The government is likely to sell a 3.5 per cent stake in Life Insurance Corporation (LIC) through an initial public offering which will hit the markets in the first week of the next month, an official said. The issue size is expected to be worth Rs 21, 000 crore, valuing the country’s largest insurer at Rs 6 lakh crore.
Detailed explanation-3: -What is the reason behind this sale? Is it for financing the budget deficits? Or is the objective of this IPO to enhance the brand image & provide a public market for the equity shares by listing them on the stock exchange. It is argued that this would also act as a profitable opportunity for retail investors.