Govt unlikely to reduce its stake in LIC for at least 2 years after IPO

The Government of India, which targets to raise around Rs 60,000 crore by diluting its 5 per cent stake in Life Insurance Corporation (LIC) of India through an IPO, is unlikely to further reduce its stake in the insurer for at least the next two years.

Answering questions from prospective investors during roadshows top officials of LIC clarified that the Government of India does not have any plan of further dilution of its stake in the Corporation.

Officials said the Corporation has sufficient capital for the next two years and won't require any funding support from the government.

The government plans to raise around Rs 60,000 crore by selling about 31.6 crore or 5 per cent stake in Life Insurance Corporation of India through an initial public offering (IPO).

The company has filed the Draft Red Herring Prospectus with the market regulator Securities and Exchange Board of India (SEBI). It has time until May 12 to launch the IPO. If it is not done by May 12, the company would be required to file fresh papers with the market regulator.

( With inputs from ANI )

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