The tenure of MR Kumar, chairman of IPO-bound Life Insurance Corporation (LIC) has been extended by another year, Department of Financial services confirmed o January 30. Along with the chairman, the government has also extended the tenure of one of the managing directors, Raj Kumar, for one year.
This has been done with a view to facilitating a smooth listing of the insurance behemoth, the government circular noted.
With the extension, MR Kumar will continue as chairman of LIC till March 2023 or till he attains the age of superannuation. 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 MR Kumar from June 30, 2021, till March 13, 2022, the date when he completes three years. The government is looking to list LIC during the current financial year in line with the Budget announcement.
In her previous 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 per cent stake in LIC. Once listed, it is likely to become the country's biggest company by market capitalisation with an estimated valuation of Rs 8-10 lakh crore.
Meanwhile, the government has significantly increased the authorised capital of LIC to Rs 25,000 crore from Rs 100 crore to facilitate the listing.