The central government is mulling over the public listing of Life Insurance Corporation of India. LIC holds 2/3 share of India’s life insurance market. According to the information received from the sources, the process is in the early stage and has been discussed within the government.
The Department of Investment and Public Asset Management (DIPAM) and DFS are exploring the pros and cons of listing the insurance company. The dilution is likely to happen with the sale of a small tranche through an IPO, followed by a further reduction in the government’s holdings, the sources informed.
If the LIC shares are listed on stock exchanges, it can easily emerge as the top listed company in the country in terms of market valuation. It is likely that LIC can overtake current leaders Reliance Industries Ltd and Tata Consultancy Services.
