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Supreme Court refuses to stay LIC IPO, to hear plea against dilution of govt’s shares


The central government on Thursday opposed a batch of petitions filed in the top court against the LIC’s IPO.

Additional Solicitor General of India appearing for the central government said this is one of the biggest IPOs in the history of India.

HIGHLIGHTS

  • The decision was taken by Justices DY Chandrachud, Surya Kant and PS Narasimha
  • Additional Solicitor General of India was appearing for the central government
  • Pleas against passing the decision to sell LIC IPO by the government through a Money bill

The Supreme Court on Thursday refused to stay the ongoing process of the initial public offering (IPO) of Life Insurance Corporation of India (LIC). This means there will be no intervention in the share allotment process which is being done.

However, the apex court agreed to hear the challenge to the dilution of the government’s shares and petitions against LIC’s IPO.

The Supreme Court stated that no case for grant of interim relief was made out. The Centre or LIC needs to reply on the matter within eight weeks and a response from petitioners four weeks after that, the top court said. These proceedings will be tagged with issue before the Constitutional Bench.

PLEA AGAINST LIC IPO

The decision was taken by a bench of Justices DY Chandrachud, Surya Kant and PS Narasimha who were hearing a batch of petitions filed in the top court against the LIC’s IPO.

The petitioners challenged the legality of the government’s move to pass the decision to launch the LIC’s IPO through a Money bill.

Additional Solicitor General of India appearing for the central government said this is one of the biggest IPOs in the history of India. More than 73 lakh applicants were involved and 22.13 crores shares have been sold at premium of Rs 939 per share.

Meanwhile, senior advocate Shyam Divan argued for petitioners that the legality of passing the decision to sell LIC IPO by the government through a Money bill also needs consideration. It could not have been passed as a money bill since the rights of public are involved, he said.

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