India: Govt plans to increase authorised capital of LIC by 2.5x to prepare for IPO
Source: Asia Insurance Review | Apr 2021
The government has proposed to increase significantly the authorised capital of the country’s biggest life insurer, Life Insurance Corporation of India (LIC), to INR250bn ($3.4bn) to facilitate its public listing scheduled for the next fiscal year beginning 1 April.
Amendments are proposed to be made to the Life Insurance Corporation Act, 1956. Currently, the paid-up capital of the life insurer is INR100bn, reported Press Trust of India.
The amendments will also lead to the setting up of a board with independent directors in line with listing obligations.
According to one of 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. The government currently owns 100% of LIC. A