[ad_1]
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.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
[ad_2]
Source link
