Govt not to reduce stake in LIC for at least 2 years after IPO
New Delhi, Apr 6: The Government of India is not considering further reducing its stake in the Life Insurance Corporation of India for at least the next two years. It aims to raise around Rs 60,000 crore by diluting its 5 per cent stake in the insurer through an IPO.
The Government of India has no plans to dilute its stake, top officials of the LIC clarified to prospective investors during roadshows.
The company has sufficient capital for the next two years and it does not require funds from the government of India which aims to sell about Rs 31.6 crore or 5 per cent stake.
The company has filed the Draft Red Herring Prospectus with the market regulator Securities and Exchange Board of India (SEBI). It has time until May 12 to launch the IPO. If it is not done by May 12, the company would be required to file fresh papers with the market regulator, ANI reports.
After coming into existence on September 1, 1956, with an initial capital of Rs 5 crore and an asset base of Rs 352.20 crore, LIC today has an asset base of over Rs 38 lakh crore with a life fund to the tune of Rs 34+ lakh crore.
From 168 offices in 1956, it today has 8 Zonal Offices, 113 Divisional Offices, 2,048 Branch Offices, 1,546 Satellite Offices, more than 42,000 Premium Points and Life Plus Offices, over 1.14 lakh employees and 10+ lakh agents as of March 2020.
With 29 crore plus policies in force, the LIC commands a market share of over 66 per cent. Thus becoming the biggest financial institution in the country.