LIC to move ahead with IPO

The cabinet committee on economic affairs has approved the proposal for an initial public offering of the state-run insurer Life Insurance Corporation of India.

A group of ministers will now decide on various issues related to the proposed offering, according to disinvestment secretary Tuhin Kanta Pandey.

The IPO of the country’s biggest insurer is expected to happen as soon as March 2022. The government, which owns 100 percent stake in LIC, will next determine the embedded value of the company to determine the stake sale details, including the amount and price band, according to a report by Bloomberg.

The current administration plans to raise USD24 billion by selling assets including Air India Ltd. and Bharat Petroleum Corp. as it attempts to revive an economy that’s been battered by the coronavirus pandemic.