The government extended the retirement age of the IPO-linked LIC chairman from 1960 to 62 by amending the Life Insurance Corporation of India (Staff) Charter.
The changes made to the rules are referred to as India Life Insurance Corporation (Personnel) 2021 Change Rules, according to a government notice dated June 30, 2021.
It should be noted that the retirement age of senior executives for most PSUs is 60, with a few exceptions, including the State Bank of India (SBI).
“Without prejudice to the provisions of these regulations, if the central government appoints the President for a term greater than 60 of that period or until he is sixty-two years old, whichever comes first,” the bulletin stated in the notice.
Last month, in light of the insurer’s planned IPO towards the end of the current fiscal year, the government approved a nine-month extension for LIC President M. R. Kumar to March next year.
In her budget speech this year, Finance Minister Nirmala Sitharaman said that LIC’s initial public offering (IPO) would take place in 202122 as part of the ambitious sales target of Rs. 1.75 lakh crore.
The government extended Kumar’s term from June 30, 2021 to March 13, 2022, when he turns three. The government has already amended the Life Insurance Corporation Act of 1956 along with the Finance Act of 2021 to make listing easier for the public.
The authorized share capital of LIC will be 25,000 million rupees, divided into shares of 10 million rupees each as amended by the Life Insurance Corporations Act 1956.
The government owns 100 percent of LIC. It will likely become the largest company in the country by market capitalization with an estimated valuation of Rs 810 lakh crore.
The largest life insurer in the country has assets of Rs 188.8.131.52 crore.
LIC received the highest business bonus of Rs 1.84 lakh crore in the fiscal year ended March 31, 2021 according to preliminary data.
The insurer’s market share with more than 29 million policyholders was 81.04 percent based on the number of policies issued in March 2021.