, India

LIC prospective investors wary of govt’ meddling in the insurer

The insurer was frequently tapped to save struggling financial firms.

Prospective inventors in Life Insurance Corporation of India’s (LIC) $8b initial public offering (IPO) are demanding assurance from company management that it will not sacrifice their interest to meet goals set out by the government, a report from Reuters said, citing unnamed sources.

ALSO READ: India state-run LIC files $8b IPO papers

LIC management and the IPO bankers were given a barrage of questions about the insurer’s past investment and their quality.

In the past few years, the insurer was a key buyer of shares in state-owned firms sold off by New Delhi, and was often bailing out less-than-successful public issues of shares. It was also frequently tapped to rescue struggling financial institutions.

Sources said that potential conflicts of interest issues are taking centre-stage in the IPO roadshows that began last week and are expected to go on until the end of the month.

LIC recently filed draft papers with the government regulator to sell 5% of its shares, potential raising $8b, as India’s biggest IPO.

Follow the link s for more news on

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Income-Allianz failed merger shows popular opinion is king
The deal faced backlash from Singaporeans who thought it betrayed Income’s social mission.
Filipino gamers hold promise for FWD
The insurer plans to support other games and aspects of the gaming ecosystem beyond esports.