LIC is well-capitalized, will like to have some stake in IDBI Bank

LIC is well-capitalized – M R Kumar, chairman of the Life Insurance Corporation of India (LIC), told the media on Monday that the business is well-capitalized and does not have any immediate capital requirements. If additional growth funding is required, the corporation will contact the government and its shareholders. 
 
The chairman stated that LIC would like to have a share in IDBI Bank, implying that the company may not totally abandon the business. This is significant since individual agents account for a significant portion of LIC’s revenue. 
 
The insurer can have a broad distribution mix with IDBI Bank as a bancassurance partner. LIC Housing Finance may seek loans from IDBI Bank, he added at the news briefing. 
 
IDBI Bank is currently owned by LIC with a 49.24% shareholding. According to LIC’s draught red herring prospectus (DRHP), it may be necessary to ensure that either IDBI Bank or LIC Housing Finance ceases to conduct housing finance services in order to comply with regulatory requirements, as housing finance activities must be done by only one business. 
 
Kumar further stated that the company achieved a total equity profit of Rs 37,000 crore in the fiscal year 2020-21. In comparison, the corporation achieved a profit of Rs 40,000 crore from November to November in 2021-22. 
 
On February 13, LIC submitted its draught prospectus (DRHP) for its upcoming massive initial public offering (IPO), which is slated to begin in March. According to the DRHP, the government-owned insurer will issue up to 31,62,49,885 (31.62 crore) equity shares with a face value of Rs 10 through an offer for sale (OFS), accounting for 5% of its equity ownership. 

Read more News & Trends on India Frontline.