India to raise $1.64bn from selling stakes in general insurers

Cabinet approves measure to sell 25% in several firms to meet the steep disinvestment targets

India to raise $1.64bn from selling stakes in general insurers

Insurance News

By Gabriel Olano

The Indian government could raise INR110 billion (US$1.64 billion) from divesting its holdings in several state-owned general insurers, in a bid to meet the steep disinvestment targets.
For the next fiscal year, the government must divest a total of INR725 billion (US$10.8 billion) from various firms. INR465 billion will be through the sale of minority stakes, while INR150 billion will be from strategic disinvestment.
“Besides strategic and minority stake sale, [INR110 billion] has been budgeted from listing of general insurance companies. The department will make its best endeavor to meet the overall budget target,” Disinvestment Secretary Neeraj Gupta told PTI.

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The Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, has approved selling of government stakes in five state-owned general insurers via public listing, aiming to reduce its holdings to 75% in each.
The five companies are: New India Assurance Company, United India Insurance, Oriental Insurance Company, National Insurance Company and General Insurance Corporation of India (GIC).
As for the strategic disinvestment targets, the Department of Investment and Public Asset Management (DIPAM) has already identified companies and has begun negotiations in several cases.

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