Ensuring transparency

LIC's listing will have multiple benefits

 Giant public sector insurer Life Insurance Corporation (LIC) has filed its draft red herring prospectus (DRHP) and the details make interesting reading. The government is looking to sell 5 per cent of this wholly-owned behemoth. That amounts to over 316 million shares and the success of this single initial public offering (IPO) alone could ensure that the disinvestment target in the Budget’s Revised Estimate is achieved in the current fiscal year.  The proceeds would go straight to the government and, as a listed entity, LIC would have to comply with more financial reporting, making its operations and balance sheet more