We prefer FPO/IPO route to enter markets: Life Insurance Corporation (LIC)

Life Insurance Corporation, the country’s largest domestic investor, invested a sum of Rs 1.92 lakh crore in FY’2009-10 in the Indian markets. Given the government’s ambitious disinvestments plans, LIC’s investment strategy assumes greater importance today.

Check : Does LIC plan to float Rs2,000 crore public issue?

"We expect to have a total premium collection in excess of Rs 2 lakh crore. Our investments will depend on the type of money flow and the collections from ULIPs," said T S Vijayan, chairman of LIC.

LIC  has always been considered as the saviour of all big Initial Public offerings (IPO) or Follow on Public issues particularly when it comes to the public sector undertakings. Even this year plans to play a significant role and says it will prefer the primary route to enter the markets.

"We will prefer the FPO/IPO route to enter the markets. We’ll look at the valuations of companies,” said Vijayan.

Even as the issue of jurisdiction of ULIPs rages on between the markets regulator and insurance regulator, LIC’s chairman Vijayan spoke his mind on why it is important to have a single regulator regime.

"ULIP as a product has not been questioned. This is a issue between the regulators and the Supreme Court will decide the case. But every sector has got only one regulator, so that would be my answer to your question,” he said.

With a premium target collection of Rs 2 lakh crore, the company is expected to once again pump in around Rs 70,000-75,000 crore into the equity markets this fiscal, thereby holding the key to the success of government’s ‘s disinvestment target of Rs 40,000 crore.

Source : NDTV Profit

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Tags: IPO Updates, Life Insurance Corporation - LIC

Category: IPO