‘We want to tell our growth story to investors’
He is a busy man. As Chairperson of the Life Insurance Corporation of India (LIC), M.R. Kumar, 61, is preparing the insurance giant for an IPO. The public listing will make LIC one of the most valued companies in terms of market capitalisation. And Kumar, who took charge in March 2019, will leave office by March 2022, the deadline for taking LIC public. In an interaction with Business Today’s Sourav Majumdar and Anand Adhikari, Kumar talks about how the insurance giant is gearing up for the IPO, the changes expected after the listing, and the way ahead. Edited excerpts:
Q: Under your leadership, LIC will create history in its 65-year journey by listing on the stock exchanges. What will be your investment pitch?
A: We have to build a growth story. We have been growing despite competition from the private sector. We must tell investors that this is what we have done after the insurance sector opened up… how we have been holding on to market share and growing year after year. Going forward, we will do the same thing, and also differently, to add value for the shareholders. We are the world’s third best-known brand, as per a recent study. LIC is the only Indian brand featured in that study, which gave it a valuation of $24 billion. Nowhere in the world after opening up the insurance sector will you find a PSU (public sector undertaking) or government-owned entity holding on to its market share (we hold 60-70 per cent). As a PSU, we are different. We have plans to expand globally.
Q: The public listing is likely to see LIC rubbing shoulders with RIL, TCS and HDFC Bank in terms of market capitalisation. What will be the big change
