India mulls hiking LIC's authorised capital ahead of IPO

The life insurer's paid-up capital is currently at $1.4b.

The Indian government is looking to increase the authorised capital of Life Insurance Corporation of India (LIC) to $3.4b (INR250b) to facilitate its public listing scheduled for the next fiscal year beginning 1 April, according to a report from Press Trust of India.

LIC’s current paid-up capital is at $1.4b (INR100b).

According to one proposed amendment, the central government will hold at least 75% in LIC for the first five years after the initial public offering, and subsequently hold at least 51% after five years of the listing.

The amendments also propose the establishment of a board with independent directors in line with listing obligations.