LIC to increase its capital to issue an IPO
Kathmandu, March 8
The authorized capital of Life Insurance Corporation of India (LIC) will be increased by 2.5 times to issue IPO.
LIC is a life insurance company which is fully owned by the Government of India. It is also the largest life insurance company in the country.
The Indian government has proposed to increase the authorized capital of the life insurance company to 3.4 billion (Rs 250 billion in IC). To this end, the Government of India has proposed to amend the Life Insurance Corporation Act, 1956. At present, LIC’s paid-up capital is INR 100 billion.
LIC is preparing to issue an IPO from April 1. Indian officials say they have proposed to increase the authorized capital to facilitate this.
LIC is now 100% owned by the Government of India. The Government of India will own 71 % of LIC for five years after the IPO. After that, the government of India is preparing to amend the policy so that the company is 51 percent owned, according to PTI.
During her budget speech, Finance Minister Nirmala Sitharaman said that the IPO of LIC would be issued in the coming fiscal year. LIC is preparing to issue 25 per cent of its issued capital in an IPO.