Life Insurance Corporation of India (LIC) chairman MR Kumar said the company’s much-awaited IPO is set to launch by December. For this, the evaluation work is going on at a fast pace. It is expected to become the largest company in the country by being listed on the stock exchange.
Mr Kumar said the company’s market valuation was most important before the IPO. It requires a software and evaluation firm to work on it. The roadshow will be done after the evaluation is over. Meanwhile, the government also needs to amend the LIC Act-155 amendments.
The company will invest more than Rs 5 lakh crore in the 2020-21 financial year
The Ministry of Finance has clearly stated that the IPO will be launched in the third quarter of 2021-22 and we are working on this deadline. By the end of the current financial year, the company’s total investment will reach more than five lakh crore, which is a record. As of January 31, 2021, LIC had invested Rs 4,44,919 crore, an increase of 4.2 per cent over the same period last year.
ULIPs do not have much tax effect
The chairman said the tax provision in the budget with a premium of more than Rs 2.5 lakh on the interest of UPIPs would not have much impact. Very few people invest more than two and a half lakh premiums in Ulap. Covid’s influence on the company’s business is also declining and a sharp improvement is visible.
Policy sales are expected to grow 5 percent in 2020-21, while overall business could grow 15 percent. Ulips currently accounts for 10% of total business, which can reach 15% in a few years
The income from equity has been 35 thousand crore rupees
LIC has made a profit of Rs 34,96868 crore through equity in the fiscal year 2020-21 as against Rs 18,371 crore in the previous fiscal. The chairman said the company bought a large amount of equity at the beginning of the financial year when the market was diving.
After July, when the market rises, the market starts selling. So far, it has earned about Rs 35,000 crore from the sale of shares. Our strategy has always been to buy and sell at a rapid pace. LIC is the largest institutional investor in debt and equity funds.