Life Insurance Corporation of India (LIC) will likely step in to buy between a third and half the equity assets of the Specified Undertaking of the Unit Trust of India (SUUTI), said two persons with direct knowledge of the plan.
The purchase from SUUTI, an offshoot of the erstwhile Unit Trust of India (UTI), could mean spending of betweenRs.25,000 crore and Rs.30,000 crore for the state-run insurer, and an equivalent windfall for the government.
With assets worth at least Rs.20 trillion, LIC has often come to the government’s rescue in large divestments.
