LIC IPO: Still no decision on discount to policyholders

At A Glance

- Gross NPA at LIC was 7% in FY21

- Net NPA was just 0.4%

- PolicyBazaar as a broker sells 2 policies of LIC

Mumbai: The life insurance behemoth Life Insurance Corporation of India (LIC) is yet to decide the amount of discount to be given to its policyholders for participating in its forthcoming initial public offer (IPO). Moreover, the corporation has not decided about the valuation of the 31 crore shares to be issued by it through the IPO. Hence, it was not possible to talk about the size of the IPO.

These announcements were made by Mini Ipe, Managing Director, LIC, in a media interaction on Wednesday.

Replying to a query by Bizz Buzz about LIC's tie-up with PolicyBazaar, she said that Policybazaar as a broker will be selling two policies of LIC, including Bima Jyoti and ULIP.

The gross NPA of the corporation has gone as high as seven per cent in the FY21.

Commenting on this, she said that lots of provisions had been made by LIC during the period and the gross NPA at 7 per cent was an outcome of that.

Still, she said that the net NPA of the corporation continued to be less at 0.4 per cent.

She further said that the maximum amount a policyholder can invest in the LIC IPO was to the tune of Rs2 lakh.

The LIC MD made it clear that 10 per cent of the shares to be floated by LIC through its IPO will be kept reserved for its policyholders.

Asked if the LIC IPO will hit the stock exchange by the month-end, she said it would be decided by the central government.