LIC IPO gets Cabinet nod; decision on issue size soon by FM-led panel

The government is targeting the launch of LIC's IPO in the last quarter of the financial year as it is yet to derive the embedded value of the insurer.

The Cabinet Committee for Economic Affairs (CCEA) has approved part divestment of the government stake in Life Insurance Corporation of India (LIC) through an initial public offering (IPO).

The size of the IPO and the extent of the government’s stake dilution in the country’s largest insurer would be taken up by the Alternative Mechanism comprising Finance Minister Nirmala Sitharaman and Minister of Road, Transport and Highways Nitin Gadkari, among others.

According to a government official, the Cabinet gave its nod for the LIC IPO last week.