Life Insurance Corporation of India (LIC) will aggressively pursue unplugging of the value of its huge real estate assets. The MD of the insurance behemoth, Siddhartha Mohanty, said that the state-run insurer is gradually taking back its properties. LIC has real estate assets in Mumbai, Kolkata and other metro cities.
The Centre is diluting 3.5% stake in LIC for Rs 21,000 crore, giving the insurance giant a valuation of close to Rs 5.5 lakh crore for now. The price dilution for retail investors is Rs 904 while for policy holders, it will be Rs 889 and for QIBs (qualified institutional buyers) Rs 949. LIC has a reserve of over Rs 30 lakh crore and its real estate is valued at a price higher than that.
Mohanty said that “insurance company valuation is a bit different and one has to see the embedded valuation”. However, he admitted that as far as real estate is concerned, over 100 litigations are on across various courts in the country.