In order to make LIC’s listing easier in the next financial year, the government is set to increase the company’s authorized capital to Rs 25,000 crore. Currently, the paid-up capital of the company is Rs 100 crore with 29 crore policies. Explain that the company started the business in 1956 with a capital of Rs 5 crore. Currently, the company has Rs 31,96,214.81 crore.
According to the proposed amendment to the Life Insurance Corporation Act, 1956, the authorized capital share of LIC would be Rs 25,000 crore. Which will be divided into 25,00 crore shares worth Rs 10 per share. The board will also be created under this amendment proposed under Finance Bill 2021. In which independent directors will be appointed following the rules of listing.
There are 27 amendments to the Life Insurance Corporation Act, 1956 for the listing of LIC. According to one of those amendments, the first 5 years after the upcoming IPO of LIC will be at least 75 per cent for the government and after completion of 5 years of listing, the government will bring its stake to at least 51 per cent.