Indian government to set up LIC's initial public offering

In order to facilitate the Initial Public Offering of Life Insurance Corporation of India (LIC), the Indian government is planning to make amendments to the laws governing the state-owned company.

The government has proposed to increase in the company's share capital which will rise from 100 billion INR (1.3 billion USD) to 250 billion INR (3.4 billion USD).

According to one of the 27 proposed amendments, the government will hold at least 75% of LIC's capital for the first five years after the IPO.

After five years of the listing, the government shall hold a minimum of 51% from the current 100%.

LIC is also expected to set up a board of directors with independent directors.

The Indian insurer's IPO is scheduled for 1 April 2021.