IPO: to take glide path for surplus LIC transfer from next year

LIC IPO: The government plans to list LIC, which is held to be the country's largest listing, in the last quarter this financial year

Ahead of the Life Insurance Corporation of India’s (LIC’s) public listing, the finance ministry and the insurer have approved gradually lowering the public sector outfit’s distributable surplus to its policyholders.

From next year, LIC will distribute 92.5 per cent of its surplus to the policyholders against 95 per cent at present, and then bring the level down to the industry norm of 90 per cent.

The pie for the shareholders, including the government, will go up to 10 per cent from 5 per cent