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Life Insurance Corporation: Indian cabinet committee clears proposal to list insurance investment company to meet financial target

The Indian government announced its plans to make an initial public offering for the state owned and controlled insurance and investment company popularly called LIC – Life Insurance Corporation.

“The Cabinet Committee for Economic Affairs last week cleared the proposal of initial public offering of LIC. The alternative mechanism on disinvestment will now decide on the quantum of stake to be divested by the government,” senior official said.

It is expected that 10% of the issue would be reserved for their policyholders with a maximum discount benefit that can go up to 10% on the floor price. The market capitalisation of the company is expected to become $180 billion.




“A final call on the size of the LIC IPO has not been taken as yet. Meeting the disinvestment target is not the sole consideration for the government. It will also consider the impact of the IPO on the economy as a whole before finalizing its size,” the official added.

DISINVESTMENT OF LIC

The government earlier stated that it will sell its stake in the corporation as a part of their disinvestment plans.

The listing of LIC is very important for the Indian government as they have to meet their disinvestment policy goal of ₹1.75 lakh crore (approximately $20 billion) this financial year.



The IPO expected during December this year or early months of 2022.