The government has extended the tenure of chairman of IPO-bound Life Insurance Corporation (LIC) by one more year with a view to facilitate smooth listing of the insurance behemoth, sources said. Besides, the government has also extended the tenure of one of the managing directors, Raj Kumar, for one year.

With the extension, M R Kumar will continue as chairman of LIC till March 2023, the sources said.

This is the second extension for the LIC chairman. Last year in June, he was given a nine-month extension in a view of LIC’s proposed initial public offering towards the end of the current financial year.

The government had extended the term of M R Kumar from June 30, 2021, till March 13, 2022, the date when he completes three years, the sources said.

The government is looking to list LIC during the current financial year in line with the Budget announcement.

In her Budget Speech, Finance Minister Nirmala Sitharaman had said the initial public offering (IPO) of LIC will be floated in 2021-22 as part of the ambitious Rs 1.75-lakh crore disinvestment target.

The government owns a 100 per cent stake in LIC. Once listed, it is likely to become the country’s biggest company by market capitalisation with an estimated valuation of Rs 8-10 lakh crore.

Meanwhile, the government has significantly increased the authorised capital of LIC to Rs 25,000 crore from Rs 100 crore to facilitate the listing.