The Rise of Reliance: as told through its stocks
Reliance Industries Limited (RIL) is India’s largest publicly traded company. Read on to know more about history of Reliance stocks and it’s rise in …
13 Oct, 2021
6 min read
14975 Views
According to a notice on its website, the state-owned Life Insurance Corporation of India (LIC) is looking for a Chief Financial Officer ahead of an initial public offering scheduled for the end of the fiscal year. Here is the full story!
Introduction
The Life Insurance Corporation of India (or LIC) serves as the country’s sole government-owned insurance company. Having been founded in 1956, it came into existence via the merging of approximately 245 insurance companies. Right up to the 1990s, LIC was able to dominate the insurance space, following which the government paved the way for the private insurance sector.
Presently, LIC has approximately 2048 branches spread across the country. Their most recent annual report indicates the presence of 8 zonal offices. These are located in Bhopal, Chennai, Delhi, Hyderabad, Kanpur, Kolkata, Mumbai and Patna. In addition to zonal offices and branch offices, LIC boasts 113 divisional offices, 1526 satellite offices and 1178 mini offices.
Examining the Need for a CFO
Set against the backdrop of several offices and a vast presence in the country, it is no surprise, therefore, that the state-backed corporation is now on the hunt for a chief financial officer. This notification was first made clear on the insurance company’s website prior to its initial public offering, which is geared to kick in prior to the end of the financial year.
The decision to hire a CFO has been made following LIC’s decision to redesignate its most high-ranking job from chairman to chief executive officer.
The Bigger Picture – LIC’s IPO
LIC presently has its value be determined to get its initial public offering (or IPO) up and running. This IPO has the potential to be one of the country’s biggest IPO’s as the government hopes to secure INR 900 billion via this issue. It will involve the sale of a 5 to 10 per cent stake of the company by the end of the fiscal year, which carries on to March 2022.
The Indian government recently authorized ten investment banks, including but not limited to SBI Capital Market, Citigroup and Goldman Sachs, to overlook the offering.
When examining the strengths and shortcomings of LIC, the following become apparent.
Strengths
There is a homogenous presence of LIC agents spread across the company’s extensive network. As per the Life Insurance Council, these agents amounted to 13.53 Lakhs as of March 31, 2020. This falls in direct contrast to 11.01 lakh agents collectively held by over 20 private life insurers.
Offerings by LIC are diverse and include life insurance plans, whole life plans, term insurance plans, endowment plans, money back plans and insurance riders.
As per the annual report published by the company for 2019-2020, LIC held a market share of approximately 69 per cent of the life insurance space.
In addition to insurance, LIC has the following business operations falling under its belt. IDBI Bank, LIC Cards Services, LIC Mutual Fund, LIC Housing Finance and LIC Pension Fund.
Presently LIC has over 1.14 Lakh employees and has foreign branches located in Fiji, Mauritius and the United Kingdom.
Shortcomings
Private sector insurance providers serve as competitors as their offerings can, in some instances, be considered superior to those on offer by LIC.
As a public sector undertaking, LIC has a number of restrictions within which it must operate.
Internal policies pertaining to fiscal and monetary policy changes in India may need to be incorporated by the company in the near future.
Conclusion
Although there presently isn’t a clearly defined date by which their IPO will be made available, there is a hype surrounding its scope. The new chief financial officer is set to be appointed prior to this taking place.
Frequently Asked Questions
Q1. Where was the post for a chief financial officer for the Life Insurance Corporation of India first put up?
A1. The opening for the position of chief financial officer for the Life Insurance Corporation of India was first put up on the company’s website.
Q2. Prior to the chief executive officer role being introduced, what was the Life Insurance Corporation of India’s most high-ranking position?
A2. Prior to the chief executive officer being introduced, the role of chairman was the Life Insurance Corporation of India’s most high-ranking position.
Q3. When was the Life Insurance Corporation of India founded?
A3. The Life Insurance Corporation was founded in 1956.
Q4. How many branch offices does the Life Insurance Corporation of India have?
A4. The Life Insurance Corporation of India boasts approximately 2048 branches spread across the country.
Q5. Does the Life Insurance Corporation of India have any offices located overseas, and if so, where?
A5. Yes, the Life Insurance Corporation of India has three offices located overseas. These foreign offices are located in Fiji, Mauritius and the United Kingdom.
How would you rate this blog?
Related Blogs
Translate the power of knowledge into action. Open Free* Demat Account
Latest Blog
-
29 Oct, 2021
7 min read
Sugar Stocks Down as Sensex Falls
Sugar stocks are indicative of important trends in the market. They are also an important cog in the industries sector of the economy. Read on to kno…
-
24 Feb, 2021
7 min read
Shree Cements: A lesson in Prudence
This article will help you take a deeper look into the rise of Shree Cements, through the lens of it’s stock performance over the past few years.
-
01 Apr, 2021
7 min read
Vodafone-Idea: What went wrong?
Mergers and acquisitions can turn the eyes of stock market investors towards the possible action that such large-scale actions can bring to the futur…
-
07 Jul, 2021
10 min read
Ixigo IPO: Ixigo Plans a 750 Crore IPO
Ixigo is a travel portal and it plans to host an IPO of between Rs 1500 crore to Rs 1800 crore later this year.
-
24 Sep, 2021
7 min read
Indian Railways Share Quarterly Results -...
The Indian Railway Catering and Tourism Corporation (IRCTC) is a subsidiary of the Indian Railways.
-
06 Oct, 2021
5 min read
Byju’s IPO Plans
Currently, India's most valuable unicorn, online education provider Byju's, is in talks to raise $400 million to $600 million and then expedite plans…
-
21 May, 2021
8 min read
Asian Paints: 7000% returns in 17 years
Some investment propositions have the ability to make investors – both the newbie and the expert alike – stop and stare.
-
08 Jul, 2021
10 min read
The Success Story of Pharmeasy
Today, PharmEasy is a reputable and well-known firm whose aim is to become the best health care delivery platform in India.
-
10 Mar, 2021
7 min read
PVR - a comeback on the cards?
Who doesn’t like to watch movies. But when the COVID pandemic first hit the Indian subcontinent, investors began to withdraw from their investments -…
-
05 Mar, 2021
7 min read
The LIC IPO Game Plan
IPOs have attracted overt attention of retail and institutional investors alike in the recent Indian stock market scene.
-
13 Jun, 2021
7 min read
Soaring commodity prices. Here's why
Prices of commodities in the energy, metal and agriculture sectors have seen a sustained rise in the first few months of this year.
-
15 May, 2021
8 min read
The Best Penny Stocks in India
Investing and trading on the stock market has the potential to generate profits.
-
08 May, 2021
8 min read
Adani Ports and its recent rise. Here's why
If you have been following the rise of Adani Ports’ stock price in recent weeks, you are probably curious as to what is driving this growth.
-
05 Oct, 2021
7 min read
LIC IPO: All we Know So Far
While investors await the Life Insurance Corporation's mammoth public offering mostly happening this financial year, why do experts think the IPO has…
-
07 Apr, 2021
7 min read
The Tata Motors Upheaval Story
The automotive industry has been famously tied to the performance of the extended economy for most countries.
-
06 Jan, 2021
6 min read
Tata Consultancy Services: A story...
Tata Consultancy Services (TCS) is the world’s most valuable IT company. Read this success story of how TCS expanded globally, acquired new verticals…
-
16 Mar, 2021
8 min read
Indiamart’s QIP: behind the scenes
Last year, when the pandemic had hit businesses hard across the globe, most people resorted to the internet to keep their businesses afloat.
-
11 Jun, 2021
7 min read
Stock Picks Based on Q4 Results
As FY21 drew to a close, it was a déjà vu moment as lockdowns (although state-level), and a second wave of the COVID-19 pandemic defined investor beh…
-
01 Jun, 2021
8 min read
Muted Tata Communications stock in wake...
There is a meme going around that says: Sneezes went from “Bless you” to “To hell with you” real soon.
-
15 Jun, 2021
10 min read
A sneak peek at Zomato's IPO plans
Covid-19 came and turned the world upside down – tourism, airlines, fashion, F&B have suffered tremendously but online financial gateways, video conf…
-
27 Jan, 2021
9 min read
HDFC Bank Ltd’s Journey to becoming the...
As of November 25, 2020, HDFC Bank had hit a market cap of ₹8 Lakh Crore and had become the third company to do so after Reliance and TCS.
-
06 May, 2021
9 min read
Should you place your bets on ITC?
Investors trading on the stock market are advised to focus on maximising their wealth by making shrewd decisions based on the performance and fundame…
-
23 Jul, 2021
8 min read
Laurus Labs Share: More than 50% Return...
Shares of pharmaceutical and biotech company Laurus Labs have continued to surge upwards and have hit a new high amounting to INR 599 per share on th…
-
11 Jul, 2021
11 min read
Go Air IPO: Go Air looks to enter the IPO market
GoAir, one of India’s most popular airlines, is preparing for an initial public offering (IPO). Rebranding itself as “Go First”, the airline filed a …
-
23 Aug, 2021
6 min read
Clean Science, GR Infraprojects IPO...
This article seeks to shed light on initial public offerings (or IPOs) that have recently been up for grabs in the market. Included among them are Cl…
-
04 Apr, 2021
7 min read
Dr. Reddy's Laboratories Ltd - Is this...
2020 was a peculiar year, especially in terms of the industries that managed to flourish despite the challenges that the lockdowns and isolation meas…
-
31 May, 2021
7 min read
The Rise of Metal Stocks Amid the 2nd Wave
The past few months have brought with them several changes.
-
09 Jul, 2021
9 min read
IPO Alert! Devyani International files...
Against all odds, the Indian market, despite a minor tailspin due to the nationwide lockdowns last year, has seemed to recover relatively well.
-
03 Jun, 2021
6 min read
Hotel Stocks on the Rise Despite Lockdown
The hospitality industry suffered a major setback when the prime minister announced a nationwide lockdown for 3 weeks at the end of March 2020.
-
24 Aug, 2021
5 min read
Stocks to Watch: NMDC, Tata Motors,...
This article seeks to shed light on stocks that have recently been made available in the market. Included among them is the government’s stake in NMD…
-
30 Aug, 2021
7 min read
Should you Invest in the Latest Sovereign...
For the uninitiated, sovereign gold bonds can be understood to be certificates issued and mandated by the Reserve Bank of India.
Ready To Trade? Start with
Subscribe to #SmartSauda Newsletter
CONTINUE WITH GOOGLE
CONTINUE WITH FACEBOOK
