According to a government source, the government is considering allowing foreign institutional investment (FII) of up to 20 per cent in Life Insurance Corporation (LIC).
LIC’s listing is set to become India’s biggest IPO ever, with the government aiming to raise up to Rs 90,000 crore from its stake sale.
The Union Cabinet had recently approved disinvestment of equity in LIC and the process of appointing merchant bankers to launch the IPO is underway.
For the second time, the government has invited bids from law firms to advise on LIC’s mega initial public offering.
A panel headed by Finance Minister Nirmala Sitharaman will decide on the size of the share sale.
For LIC’s IPO, the Center had amended the LIC Act of 1956. After the amendment, like any other listed company, the corporation, which is now governed by the Companies Act and the Market Regulatory Act (post IPO), has to prepare its quarterly balance sheet. and public, major developments with profit or loss figures.