M R Kumar, Chairman, LIC
With the extension, M R Kumar will continue as chairman of LIC till March 2023, the sources said.
Besides, the government has also extended the tenure of one of the managing directors, Raj Kumar, for one year.
New Delhi:
The government has extended the tenure of chairman of IPO-bound Life Insurance Corporation (LIC) by one more year with a view to facilitating the smooth listing of the insurance behemoth, sources said.
Besides, the government has also extended the tenure of one of the managing directors, Raj Kumar,who would have retired tomorrow, for one year.
Raj Kumar, the senior most MD, is the point person for all all kind coordination with the government on the matter of LIC IPO.
With the extension, M R Kumar will continue as chairman of LIC till March 2023, the sources said.
This is the second extension for the LIC chairman. Last year in June, he was given a nine-month extension in a view of LIC’s proposed initial public offering towards the end of the current financial year.
The government had extended the term of M R Kumar from June 30, 2021, till March 13, 2022, the date when he completes three years, the sources said.
The government is looking to list LIC during the current financial year in line with the Budget announcement.
“LIC disinvestment amount will be included in this year’s (Budget) because we aim to list it before March 31,” Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey earlier had told PTI.
Media reports suggest the government has asked regulators for a swift review of LIC’s draft prospectus as it pulls out all the stops to have the country’s biggest IPO completed by the end of March.
The Securities and Exchange Board of India (SEBI) has been urged to complete its vetting process in less than three weeks instead of the 75 days it usually requires, they said.
Having pledged numerous times to list LIC by the end of the financial year, Prime Minister Narendra Modi’s administration is keen to avoid any loss of face and gain further momentum for its privatisation programme aimed at replenishing government coffers.
In her Budget Speech, Finance Minister Nirmala Sitharaman had said the initial public offering (IPO) of LIC will be floated in 2021-22 as part of the ambitious Rs 1.75-lakh crore disinvestment target.
The government owns a 100 percent stake in LIC. Once listed, it is likely to become the country’s biggest company by market capitalization with an estimated valuation of Rs 8-10 lakh crore.
Meanwhile, the government has significantly increased the authorized capital of LIC to Rs 25,000 crore from Rs 100 crore to facilitate the listing.