The government is planning to reserve 10 percent of the planned Initial Public Offering (IPO) for policyholders of Life Insurance Corporation (LIC) in the public issue. According to the report, over 1 crore new Demat accounts will also be opened before the launch of the IPO.
Earlier on Monday, Finance Minister Nirmala Sitharaman had announced during her Budget 2021 speech that the LIC IPO will be brought in fiscal year 2022.
Economic Affairs Secretary Tarun Bajaj said, the LIC IPO may hit the market in the fourth quarter of next financial year, and the government has introduced amendments to the Life Insurance Corporation Act 1956 to facilitate this. As many as 27 amendments have been pushed through the Finance Bill 2021 tabled by the finance minister along with the Union Budget.
The government has appointed actuarial firm Milliman Advisors LLP India for assessing embedded value of LIC ahead of the IPO, likely to be the largest public issue in Indian history. Department of Investment and Public Asset Management Secretary Tuhin Kanta Pandey said the government is planning to complete the listing of the life insurer in the second half of next financial year starting April.
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