Mumbai : A partial stake sale in Life Insurance  Corporation, by way of foreign direct investment, will be bold a path-breaking step by the government in its endeavor to raise resources through its mega divestment plan, PHD Chamber of Commerce and Industry said today.

LIC is the major player in the life insurance segment, with around 66% market shares and revenues to the tune of over Rs.  60 lakh crores. It should, therefore, have no problem in attracting foreign investment at lucrative pricing and good terms.

 “The FDI stake sale will also pave the way for the much-awaited debut of LIC in the domestic stock market.   The IPO can be a big mechanism for mass participation of investors, and in turn, procurement of sizeable resources by the Government,” PHD Chamber Chairman, BFSI Committee, Mr Jyoti Prakash Gadia said.

Besides, if the FDI fructifies, it will create a more robust and active stock market as LIC is closely watched by market players for its strong growth numbers.  The insurance major had a net profit of around Rs. 37000 crore in FY21 and approximately Rs. 10,000 crores in Q1FY22.

A foreign investor may also bring in international know-how and best practices that would increase efficiency and competitiveness of the expanding life insurance market.