Given the mega initial public offer (IPO) of Life Insurance Corporation (LIC) scheduled to hit the market before March 31, finance minister Nirmala Sitharaman on Friday reviewed the progress in preparations with senior officials.

“Union finane minister Smt. @nsitharaman reviewed progress of the LIC IPO in New Delhi today (Friday) in presence of @SecyDIPAM; Secretary @DFS_India and Senior Officials @LICIndiaForever and @FinMinIndia via VC,” finance ministry tweeted.

The LIC IPO could include offloading of up to 10% government stake and some fresh equity issuance by the insurer for business expansion plans. While the valuation of the insurer will be known closer to the listing, it is believed to be worth Rs 8-11.5 lakh crore, meaning a 10% stake sale could fetch the government around Rs 80,000-1,00,000 crore.

The LIC IPO is crucial for the government to narrow the shortfall in disinvestment receipts in the current financial year. With privatisation of fuel retailer-cum-refiner BPCL delayed, the government will miss the ambitious `1.75 lakh crore disinvestment target for the current financial year.

In October, Tatas won the bid for acquiring Air India by offering Rs 18,000 crore as enterprise value (EV) consideration. Air India privatization will likely be completed by end-January.