Department of Investment and Public Asset Management has proposed the dilution of the government shareholding in India’s leading life player from the current 100% to 75%. It has already sent out a draft note to India’s cabinet concerning the stake sale, and also to relevant agencies. The IPO is expected to launch in the first half of 2021, while potential financial advisers took part in a virtual beauty parade in July and should be appointed soon. There are also plans developing for a bonus and discount for retail investors.
GDP fell a concerning 23.9% in the second quarter of 2020, with an economic bounce back uncertain as the virus has yet to be definitively brought under control. On the plus side, there has been an increase in purchases of health cover which has helped bolster sections of the market. There have been growing calls from economists for a large government stimulus package to help improve the situation for households and SMEs. However, it’s understood the cabinet would prefer to get the virus under control before launching such a stimulus. This is proving a huge challenge and is likely to take several more months.