The government and Life Insurance Corporation (LIC) are planning a big push to enhance retail investor participation ahead of the mega initial public offer (IPO) of the state-run insurance giant.

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The duo is planning a campaign to give a big push to retail investor participation, according to a report by Business Standard.

The campaign will aim to make retail investors as well as LIC policyholders aware of India’s largest public offering, the report cited an official as saying. The report also said demat accounts would be opened for LIC policyholders in IDBI Bank.

The Union government has already reserved 10 percent of the share sale for LIC policyholders. According to rules, an issuer company can offer shares to employees at a discount of a maximum of 10 percent on the floor price.

On Saturday, Amit Agarwal, Additional Secretary in the Finance Ministry, revealed that after the listing of LIC shares, about 60 percent of the insurance business will be with listed companies. "The sector as a whole has been growing at a pace significantly higher than that of the overall economy," he said.

LIC's IPO is part of the Centre's efforts to raise Rs 1.75 lakh crore through disinvestment in the current financial year. Of the Rs 1.75 lakh crore, the government plans to garner Rs 1 lakh crore from selling stakes in PSU banks and financial institutions.

LIC is the country's largest life insurance company. It has a market share of over 66 percent.