The government has proposed to hike the authorised capital of Life Insurance Corporation of India to Rs. 25,000 crore to facilitate its listing slated for the next fiscal. Presently, the paid-up capital of LIC with over 29 crore policies is Rs. 100 crore. The amendments, which were proposed as part of Finance Bill 2021, will lead to the setting up of a board with independent directors in line with listing obligations.
According to one of the 27 proposed amendments, the central government will hold at least 75% in LIC for the first five years post the IPO, and subsequently hold at least 51% at all times after five years of the listing.
