Sunday, October 2, 2022

‘LIC is well capitalised,’ says Kumar ahead of mega IPO

State-run Life Insurance Corporation Of India (LIC), which is planning the country’s largest IPO next month, is well capitalised, the company’s chairman M.R Kumar said on Monday.
Kumar said LIC’s potential investors should not worry about government control post the IPO as decisions in the country’s largest insurance company are taken by its board and not by the government, which will hold 95% of stake post the IPO.
LIC is planning to sell a 5% stake to raise about $8 billion next month, which could make it India’s largest IPO by far.
“As of now, I do not believe that we require capital. Going forward if there is any growth capital requirement, we will approach not only the government but all the shareholders,” said Kumar.
“The profitability of any insurance company is different from others. Our surplus was more than Rs 50,000 crore, but 95% of it was going to policyholders. Going forward, the surplus distribution changes from 95% to 90%, so profitability will also increase gradually,” he added.
“I would personally like to have some stake in IDBI Bank. It has been the strongest contributor to the bancassurance channel for us.
This will help us to grow that part of the channel. Therefore, I would like to see that relationship going forward,” said Kumar.

SourceAGENCIES