Govt extends LIC chairman's tenure for second time

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. The news regarding this was flashed at 12 today.

When approached by Bizz Buzz, LIC chairman, MR Kumar confirmed the development. Meanwhile, the government has also extended the tenure of the senior most managing director, Raj Kumar, for one year. Raj Kumar is playing a key role, after chairman, in the processing of the Corporation's forthcoming IPO. Raj Kumar may be a candidate for the post of next LIC chairman in future, sources said.

With the extension, MR Kumar will continue as chairman of LIC until March 2023.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. Prior to it, 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 sources said.

The government is looking to list LIC during the current financial year in line with the Budget announcement. 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 over Rs 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. Interestingly, Raj Kumar, whose retirement was due on January 31. Post completion of extended tenure, he will be demitting the LIC MD's office in January next year.