Up to 10% of the LIC IPO issue size would be reserved for policyholders, Minister of State for Finance Anurag Thakur said.
The government will remain the majority shareholder and will continue to retain management control safeguarding the interest of policyholders, writes The Economic Times.
In her Budget Speech 2021, Finance Minister Nirmala Sitharaman said the initial public offering (IPO) of Life Insurance Corporation (LIC) would be launched in the next financial year, beginning April 1.
The LIC Amendment Act has been made part of the Finance Bill, thereby bringing the required legislative amendment for launching IPO of the country's largest life insurer.
The Department of Investment and Public Asset Management (DIPAM), which manages the government's equity in state-owned companies, has already selected actuarial firm Milliman Advisors for ascertaining the embedded value of LIC.
Deloitte and SBI Caps have been appointed as pre-IPO transaction advisors.