The Government of India is planning to sell a part of its stake in Life Insurance Corporation of India (LIC) through an IPO.
The move was proposed by the Union Finance Minister Nirmala Sitharaman while presenting the annual budget.
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Currently, the government owns 100% stake in LIC.
Following the announcement, Minister of State for Finance Anurag Thakur told news agency PTI that the sale of LIC stake will bring in greater transparency.
The listing will also open public participation and deepen the equity market, he told the news agency.
The interest of the policyholders of LIC will be protected, Thakur further added.
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By GlobalDataThakur was quoted by PTI as saying: “Government came out with the idea (LIC listing). The details will follow and it will be in the interest of of LIC and its policyholders.”
However, he did not specify the quantum of stake sale. The divestment details are expected to be finalised after the amendment to the LIC Act.
With the listing of state insurer, the government aims to raise around INR900bn ($12.60bn).
Finance Minister Sitharaman also proposed to sale government’s remaining stake in IDBI Bank. It can be noted that LIC is the majority shareholder of the troubled lender.
In January last year, LIC concluded the purchase of a 51% stake in IDBI Bank.
