New Delhi, Mar 7 (IANS): With a view of listing the state-run insurance major Life Insurance Corporation of India (LIC), the government has proposed to raise the authorised capital of LIC to Rs 25,000 crore.

As per the amendments proposed under the Finance Bill 2021, the authorised share capital of LIC shall be Rs 25,000 crore divided into 2,500 crore shares of Rs 10 each.

The share capital of the corporation shall consist of equity shares and preference shares, which may be fully paid-up or partly paid-up, said the Finance Bill.

"The corporation may from time to time increase its issued share capital, with the previous approval of the Centre, whether by public issue or rights issue or preferential allotment or private placement or issue of bonus shares to existing members holding equity shares, or by issue of shares to employees pursuant to share based employee benefits schemes, or by issue of shares to life insurance policyholders of the Corporation, or otherwise," it said.

However, the central government shall at all times, not less than 51 per cent of the issued equity share capital of the corporation and for five years after the IPO, the Centre will hold not less than seventy-five per cent.

The mega IPO is likely to take place around Diwali this year.

Presenting the Union Budget for FY21-22, Finance Minister Nirmala Sitharaman had said that all the announced disinvestment processes, including the LIC IPO will be completed in the upcoming fiscal.