Listing of insurance behemoth Life Insurance Corporation (LIC) may be done in the second half of the next financial year, finance secretary Rajiv Kumar said on Sunday.
Finance minister Nirmala Sitharaman while presenting Union Budget 2020-21 on Saturday proposed to sell a part of government’s stake in LIC through an initial public offer next fiscal.
There are a number of processes which have to be followed and some legislative changes would also be required for the listing of LIC, Kumar said.
“We will follow the extant procedure for listing and for other things, including the legislative changes it requires, in consultation with the ministry of law and that process we have already started ... listing in the second half of FY21 seems logical,” he said.
The listing of LIC will help bring in greater transparency, public participation and also deepen the equity market, he told PTI in an interaction.
On the extent of dilution, Kumar said it could be 10 per cent but no decision has been taken so far.
The government aims to garner Rs 90,000 crore from the listing of LIC.