LIC IPO | A look at the journey of India’s leading insurance company

The central government is all set to launch the mega initial public offering (IPO) of Life Insurance Corporation (LIC) soon. The listing of LIC is poised to be India's biggest IPO to date, with the government looking to raise up to Rs 1 lakh crore by selling shares. LIC continues to be the dominant life insurer even in the liberalised scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records

Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil.
Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil.
The Parliament of India passed the Life Insurance Corporation Act on June 19, 1956 and on September 1, India’s leading insurance company LIC was formed with a capital contribution of Rs 5 crore from the Indian government. Over 245 insurance companies and provident societies were merged and nationalized to create the state-owned Life Insurance Corporation of India. (Image: Rajya Sabha)
The Parliament of India passed the Life Insurance Corporation Act on June 19, 1956 and on September 1, India’s leading insurance company LIC was formed with a capital contribution of Rs 5 crore from the Indian government. Over 245 insurance companies and provident fund societies were merged and nationalised to create the state-owned Life Insurance Corporation of India. (Image: Rajya Sabha)
The nationalization of the life insurance business in India was a result of the Industrial Policy Resolution of 1956, which had created a policy framework for extending state control over at least 17 sectors of the economy, including life insurance.
The nationalisation of the life insurance business in India was a result of the Industrial Policy Resolution of 1956, which had created a policy framework for extending state control over at least 17 sectors of the economy, including life insurance.
India’s statutory insurance and investment corporation, is headquartered in Mumbai city. Today LIC network comprises of 113 divisional offices, 8 zonal offices, 2048 branch offices, 1546 satellite offices, 1173 mini offices networked through wide area network with around 1.20 million agents across the country as on March 30, 2021.
India’s statutory insurance and investment corporation, is headquartered in Mumbai. Today LIC network comprises 113 divisional offices, 8 zonal offices, 2,048 branch offices, 1,546 satellite offices, 1,173 mini offices networked through wide area network with around 1.20 million agents across the country as on March 30, 2021.
As of March 2020, LIC has more than 31 lakh crores worth of assets and has invested over Rs 2,82,000 crores in people’s welfare. Over the years, LIC has become a synonym for life insurance in India and a financial conglomerate.
As of March 2020, LIC has more than 31 lakh crores worth of assets and has invested over Rs 2,82,000 crores in people’s welfare. Over the years, LIC has become a synonym for life insurance in India and a financial conglomerate.
During the 2021 Union Budget, Finance Minister Nirmala Sitharaman announced a proposal to conduct an initial public offering for LIC. In year 2021, government of India had proposed to significantly enhance the authorised capital of Life Insurance Corporation of India (LIC), to ₹250 billion to facilitate its public listing scheduled for the next fiscal year.
During the 2021 Union Budget, Finance Minister Nirmala Sitharaman announced a proposal to conduct an initial public offering for LIC. In year 2021, government of India had proposed to significantly enhance the authorised capital of Life Insurance Corporation of India (LIC), to ₹250 billion to facilitate its public listing scheduled for the next fiscal year.
The government is likely to file the draft papers for the mega IPO of LIC with market regulator Sebi this week, while a part of the issue will be reserved for anchor investors. The initial public offering of the LIC is aiming to bring in as many bidders as possible. The issue is expected to launch in March after approval of Sebi.
The government is likely to file the draft papers for the mega IPO of LIC with market regulator Sebi this week, while a part of the issue will be reserved for anchor investors. The initial public offering of the LIC is aiming to bring in as many bidders as possible. The issue is expected to launch in March after approval of Sebi.
From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business and continues to be the dominant life insurer even in the liberalized scenario of Indian insurance.
From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business and continues to be the dominant life insurer even in the liberalized scenario of Indian insurance.


Source / Credits / Reference : Moneycontrol


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