LIC public offer likely by Dec

Life Insurance Corporation of India (LIC) is planning to come out with an initial public offer (IPO) by December 2005 to meet the stipulated Insurance Regulatory Development Authority (IRDA) norm of having a minimum paid-up capital of Rs 100 crore.

Board level sources said today that since LIC was formed by an act of the Parliament in 1956 with a paid-up capital of Rs 5 only and entirely subscribed to by the central government, the company would now have to infuse fresh capital as per the norms laid down by the regulator.

They added that the company was toying with the idea of diluting 26% stake through the IPO. The decision, however,  would have to be taken at the highest level, and approval of the cabinet was required for such a move.