Divestment in three public sector entities on the cards ahead of LIC IPO: Report

Besides the three OFS and LIC, an IPO is also likely for WAPCOS, where the government plans to shed 25 percent stake (Image: Shutterstock)

The Centre is likely to divest interest in at least three public sector holdings, before proceeding with Life Insurance Corporation of India’s (LIC) initial public offering (IPO) in 2022.

The companies in question – Rashtriya Chemical and Fertilizers, National Fertilisers and Mishra Dhatu Nigam will be divested within the next quarter, via the offer on sale (OFS) route, an official told The Economic Times.

Moneycontrol could not independently verify the report.

The official added that LIC’s offer is expected to hit the markets early next year and transactions of these three should be completed without issues by then as they already have the necessary approvals in place. They expect a “good response” for these OFS issues, it added.

The source further said the Centre will offload 20 percent of its 74 percent stake in National Fertilisers, and 10 percent each in Rashtriya Chemical and Fertiliser (74 percent) and Mishra Dhatu Nigam (75 percent).

Besides these three and LIC, an IPO is also likely for WAPCOS, where the government plans to shed 25 percent stake, it added.

Last week, the Centre sold an 8 percent stake in HUDCO through the OFS route. It has so far raised Rs 7,646 crore in total, including the NMDC OFS and sale of SUUTI stake in Axis Bank.