The Centre on Saturday proposed to sell part of its holding in Life Insurance Corporation of India (LIC) through an Initial Public Offering. This was announced by Finance Minister Nirmala Sitharaman during her Budget speech.

"In order to provide greater access to financial markets, unlock true value and induce market discipline, the Government has proposed sale of a part of its holding in LIC by way of Initial Public Offer (IPO)," Sitharaman said during her Budget speech that lasted more than 2.5 hours.

This shall also be an opportunity for retail investors to participate in the wealth so created, she said.

The listing of LIC is part of the government's disinvestment initiative. The government has set a divestment target of Rs 2.1 lakh crore for FY21 compared with Rs 1.05 lakh crore target for the ongoing financial year.

Sitharaman did not give details about how much share the government will sell. The government owns the entire 100% stake in the company.

As Sitharaman announced the listing of India's largest insurer which owns over 70% of the market share, it angered opposition members of Lok Sabha who raised the noise level during her Budget speech.

The company manages assets of more than Rs 31.11 lakh crore and has a market value of Rs 28.74 lakh crore.

Its income in 2018-19 was around Rs 560,784 crore in 2018-19.

Finance Minister Nirmala Sitharaman presented the Union Budget 2020 on Friday. As the Indian economy faces one of the worst slowdowns in the country, the Finance Minister announced various steps to spur growth.

The Union Finance Minister, who was presenting her second and the Modi government's seventh consecutive one Budget, announced a 16-point plan for the agricultural sector.

Sitharaman also proposed the sale of the balance holding of Government of India in IDBI Bank to private, retail and institutional investors through stock exchange.

"On the back of bank consolidation and capital infusion of Rs 3,50,000 crore into Public Sector Banks (PSBs), the Finance Minister asserted that governance reforms would be carried out to make them more competitive, transparent and professional and thereby ensure a robust banking system. A few PSBs would also be encouraged to approach capital market to raise additional capital," she said.