The tenure of LIC chairman M.R. Kumar has been extended by the appointments committee of the cabinet on Wednesday.
Kumar’s term as LIC chairman was supposed to end on June 30, 2021, but the Centre extended his term by almost nine more months till March 13, 2022.
Officials said the rules under the Life Insurance Corporation Act, 1956, have been amended to provide extension beyond 60 years in view of the ongoing preparations for the initial public offer of Life Insurance Corporation.
The Centre hopes to mobilise Rs 90,000 crore by selling up to a 10 per cent stake in LIC.
The maiden offer of LIC would be floated in 2021-22 as part of the Rs 1.75 lakh crore divestment target.
The government owns 100 per cent in LIC. Once listed, it is likely to become the country’s biggest company by market capitalisation with an estimated valuation of Rs 8-10 lakh crore.
The government as part of the finance bill had significantly increased the authorised capital of LIC to Rs 25,000 crore from Rs 100 crore to facilitate the listing. LIC has an asset base of Rs 31,96,214.81 crore.
LIC collected the highest ever new business premium of Rs 1.84 lakh crore in 2020-21.
