LIC IPO can take time, process may extend beyond FY21, says Macquarie

The investment banking and financial services firm in a note cast doubt on chances of LIC hitting the IPO market in next financial year (FY21) following its interactions with actuaries and valuers

The initial public offering (IPO) of Life Insurance Corporation (LIC) of India can take much longer. The entire process could extend beyond 2020-21 (FY21), according to foreign research house Macquarie.

The investment banking and financial services firm in a note cast doubt on the chances of LIC hitting the IPO market in the next financial year (FY21), following its interactions with actuaries and valuers.

The report pointed out that the first step towards valuing the IPO would be to split LIC’s books into three parts — the traditional participating (PAR) book, non-PAR book, and shareholders’ funds.

In insurance industry parlance, PAR stands for