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    IPO could make LIC India's most valued company, says report

    IPO could make LIC India's most valued company, says report

    IPO could make LIC India's most valued company, says report
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    By CNBC-TV18  IST (Published)

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    LIC, the public sector life insurance behemoth's market capitalisation may cross over Rs 17 lakh crore, the report said, on the basis of valuation of its AUM, which is more than Reliance Industries ltd or Tata Consultancy Services.

    As India's largest financial institution with assets under management (AUM) of over Rs 31 lakh crore, Life Insurance Corporation of India (LIC) could become the most valued company in the country, according to a Times of India report.
    The public sector life insurance behemoth's market capitalisation may cross over Rs 17 lakh crore, the report said, on the basis of valuation of its AUM.
    To put it into perspective, the ToI report says that SBI Life Insurance, which has an AUM of Rs 1.6 lakh crore is valued at Rs 89,400 crore. Currently, Mukesh Ambani-led Reliance Industries is the country's top company with a market cap of Rs 8.7 lakh crore, the report added.
    Quoting former IRDAI member Nilesh Sathe, the ToI report said, "Going by this valuation, the government can meet its entire disinvestment target of Rs 2.1 lakh crore by divesting 5 percent of LIC." Another expert, Miliman's Sanket Kawatkar was cautious on this valuation pointing that AUM alone can't be a factor and it would vary according to the product, the report said.
    The valuation of ULIP business would be different as compared to traditional business, which will be different from AUM obtained from group policies, the expert added. The ToI report quoted former LIC chairman SB Mathur on the roadblocks in LIC's listing, mainly an amendment to the Life Insurance Nationalisation Act of 1956.
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